Food delivery giant Swiggy is all set to enter the public markets this month with its anticipated initial public offering.

What Happened: The company’s IPO kicks off for retail investors on November 6 and ends on November 8. The anchor investment for the issue, which comprises a fresh issuance of 11.54 crore shares, totalling ₹4,499.00 crores, along with an offer for sale of 17.51 crore shares amounting to ₹6,828.43 crores, begins on Tuesday.

The allotment for the Swiggy IPO is expected to be finalised on Monday, November 11. The IPO is set to list on the BSE and NSE, with the tentative listing date scheduled for November 13.

The price band for the Swiggy IPO is set between ₹371 and ₹390 per share. The minimum lot size for an application is 38 shares, requiring a minimum investment of ₹14,820 for retail investors. The issue also includes a reservation of up to 7.5 lakh shares for employees, offered at a ₹25 discount to the issue price.

The grey market premium (GMP) for the Swiggy IPO stood at ₹20 as of 7:54 a.m. on Tuesday. At the current GMP, the stock is expected to be listed at ₹410 — a premium of 5.13% over the upper price band. While GMPs can offer an indication of market sentiment towards an IPO, they are not necessarily a reliable predictor of how the stock will perform once it is listed.

See Also: Bharat Forge, Tata Group Firm Set To Produce Guns That Will Replace Old Bofors Arms: Report

What Analysts Think: SBI Securities believes that the IPO is fairly priced when compared to Zomato and suggests investors subscribe to the issue from a long-term investment perspective.

Swiggy is the most valuable brand in the Consumer Technology & Services Platforms category and ranks among the top 25 most valuable brands in India overall, SBI noted. The company has shown consistent growth in monthly transacting users (MTUs) across its food delivery and quick commerce segments.

It also holds the largest share of consumer spending in terms of monthly gross order value (GOV) per monthly transacting user in the hyperlocal commerce space, the brokerage said.

KRChoksey also had a “subscribe” rating for the IPO. It noted Swiggy’s strategic focus on hyperlocal commerce, which positions it as a dominant player in the sector.

The company has seen consistent growth in average order value (AOV) and has expanded its network of dark stores from 301 in FY22 to 523 in FY24. As of June 30, 2024, Swiggy reached 112.73 million users.

The expansion of dark stores, along with the introduction of non-grocery categories, is designed to increase basket sizes and meet rising consumer demand, the brokerage said.

With these strengths and the anticipated growth of the online food delivery and quick commerce markets, Swiggy is well-positioned for continued success, the brokerage said.

Read Next: RVNL Shares In Green After Winning ₹625 Cr Project From South Central Railway