Swiggy, India’s beloved food delivery giant, is finally going public. With its IPO set to open from November 6 to November 8, 2024,.all eyes are on the Swiggy GMP Today, as of today Gmp Is trading at 15 per share.Grey Market Premium (GMP) to get a sense of how investors feel about its upcoming debut, lets checkout is the Swiggy IPO Good or Bad investment?
| Table Of Content |
|---|
| Swiggy IPO GMP Today |
| What’s Influence the GMP? |
| Swiggy IPO Details |
| Swiggy IPO Financials |
| Swiggy IPO Apply Or Not – Key Pointers |
| Ratings By Top Analyst. |
| Financial Disclaimer |
| FAQ |
Swiggy GMP Today
Swiggy GMP has seen some notable fluctuations in recent days, with the grey market reflecting a blend of cautious optimism and temperate interest from potential investors:
Swiggy IPO GMP Trends
| Date | GMP (₹) | Expected Listing Price (₹) | Percentage Gain Over IPO Price (%) |
|---|---|---|---|
| November 4, 2024 | 15 | 405 | 3.8 |
| November 3, 2024 | 18 | 408 | 4.4 |
| November 2, 2024 | 20 | 410 | 5.0 |
| November 1, 2024 | 20 | 410 | 5.0 |
| October 31, 2024 | 18 | 408 | 4.4 |
| October 30, 2024 | 22 | 412 | 5.7 |
| October 29, 2024 | 25 | 415 | 6.4 |
Summary of Swiggy GMP Trend
In short, Swiggy’s GMP fluctuated from a high of ₹25 to a low of ₹15 over the week. The initial excitement appears to have leveled off, suggesting investors are setting realistic expectations for listing gains rather than looking for blockbuster returns. This kind of fluctuation is common as sentiment balances out closer to the IPO date.
What’s Influence the GMP?
Several factors play into Swiggy’s GMP and the investor sentiment around it:
- Market Sentiment: Investors seem cautious but steady in their interest, which is why the GMP has hovered in the ₹15-₹25 range.
- Broader Economic Conditions: Grey market interest has been influenced by the overall stock market volatility, with investors weighing risks and opportunities carefully.
- Swiggy’s Financial Standing: While Swiggy has a strong brand and has grown in revenue, its ongoing losses impact investor confidence.
Swiggy IPO Details
- Issue Price: ₹390 per share
- IPO Dates: November 6 – November 8, 2024
- Listing Date: November 13, 2024
- Minimum Investment: 38 shares (per lot)
- Offer Structure: Primarily geared toward institutional buyers (75%), with smaller allocations for high-net-worth individuals (15%) and retail investors (10%).
Swiggy IPO Financials
Swiggy’s financial journey tells a tale of growth with some hurdles. The company’s revenue saw a solid 34% increase, reaching ₹11,634.35 crore in FY2024 compared to ₹8,714.45 crore the previous year. However, Swiggy is yet to achieve profitability, with a net loss of ₹2,350.24 crore in FY2024—an improvement from a ₹4,179.31 crore loss the previous year. The company’s asset base as of June 30, 2024, stands at around ₹10,341 crore, and its net worth is ₹7,444.99 crore, reflecting a stable base despite the high investment in growth. ( Reffered from Swiggy IPO DRHP)
Swiggy IPO Good or Bad – Key Pointers
1. Understand Swiggy’s Financial Strength
- Growth vs. Profitability: Swiggy’s revenues have been growing impressively, but it’s still not profitable. Check if it’s reducing its losses or still relying on heavy external funding. This could help gauge how close Swiggy is to a stable financial footing.
- Cost Efficiency: Swiggy’s efforts to streamline logistics and reduce acquisition costs show promise. Any improvements here are good signs but look for consistency. If costs are well-managed, it could indicate a sustainable future.
2. Look at Swiggy’s Market Edge
- Competitive Landscape: Swiggy is competing with giants like Zomato. What stands out? It could be Swiggy’s “quick commerce” push or market share in smaller cities. Understanding its edge can tell you if Swiggy can retain and grow its user base in a crowded market.
- Revenue Mix: See where Swiggy’s money is coming from. Is it mainly from food delivery, or is its grocery business starting to contribute? Diverse revenue sources could mean added resilience.
3. Factor in Market Trends
- Economic Sentiment: A low GMP may reflect overall caution in the market right now. If the market is shaky, IPO listings tend to underperform. Check if other recent IPOs in the tech and consumer spaces have seen similar trends.
- Industry Sentiment: Other e-commerce or delivery IPOs can give clues on how investors feel about this space. Recent listings or funding rounds in the delivery sector might reveal how confident investors are in this industry.
4. Don’t Just Focus on GMP
- Anchor Investors: If reputable anchor investors are involved, it shows confidence in Swiggy’s growth. Investigate the profiles of these investors and see if they’ve backed similar ventures with success.
- Broker Analysis: While GMP is one indicator, analyst recommendations from brokerages offer deeper insights. Brokers often weigh company fundamentals over GMP, giving a broader perspective on whether Swiggy is priced right for its potential.
5. Monitor Subscription Demand on Days 1 and 2
- Subscription by Category: Check how different investor groups are reacting. Strong demand from institutional investors (QIBs) suggests confidence among professionals, while interest from retail and high-net-worth individuals (NII) reflects general market enthusiasm.
- Day 1 vs. Day 2 Demand: Day 1 can show initial excitement, while rising demand on Day 2 hints at building confidence. Keeping an eye on subscription levels each day can give you insight into real-time sentiment.
6. Align with Your Own Investment Goals
- Long-Term or Short-Term? If you’re looking for a quick profit, low GMP may be a red flag. But if you’re in for the long haul, Swiggy’s strong brand and potential in a high-growth market could still be attractive—just be ready for some ups and downs.
- Risk Tolerance: IPOs with minimal GMP usually imply lower listing gains. If you’re willing to accept some risk and believe in Swiggy’s long-term story, it could still be a worthwhile addition to your portfolio.
Ratings By Top Analyst.
Here’s a simpler breakdown of the broker and analyst opinions on Swiggy’s IPO:
- D R Choksey FinServ thinks Swiggy is worth considering for investment. They see Swiggy as an innovative company with a solid place in India’s growing delivery market, but they do acknowledge it’s not yet profitable, so investors should keep that in mind.
- SBICAP Securities and Dilip Davda take a more cautious stance, recommending a “May Apply” approach. They recognize Swiggy’s strong market presence and growth but point out that its financials remain in the red, which could be a concern for more conservative investors.
- Capital Market is even more cautious, giving Swiggy a “Neutral” rating. They suggest that only high-risk investors might consider the IPO. With Swiggy’s pricing and ongoing losses, Capital Market advises those looking for safer bets to wait and watch for now.
In short, most brokers acknowledge Swiggy’s growth potential but advise investors to assess their risk tolerance, as profitability is still on the horizon. If you’re okay with the risks, Swiggy could be an interesting choice; otherwise, it might be wise to take a wait-and-see approach. This ratings help you to decide swiggy ipo apply or not.
Bottom Line
To Find answer of Swiggy IPO Good or Bad, we need to consider, the minimal GMP may call for cautious optimism rather than aggressive buying. By closely watching subscription trends over the first two days and considering the company’s fundamentals, you’ll be in a better position to decide whether this IPO aligns with your investment goals.
Financial Disclaimer: The information provided herein is for educational/informational purposes only and should not be construed as financial advice. Investing in stocks, including IPOs, involves risks, and past performance is not indicative of future results. Always conduct your own research and consult with a financial advisor before making investment decisions.
Swiggy IPO FAQs
When does the Swiggy IPO open?
The Swiggy IPO will open for subscriptions on November 6, 2024, and close on November 8, 2024.
What is the price range for Swiggy shares?
Shares are priced between ₹390 and ₹410, giving investors some flexibility in their bids.
What’s the current swiggy gmp today
As of November 4, 2024, the GMP stands at ₹15, suggesting a listing price around ₹405, indicating a potential gain of about 3.8%.
How can I apply for the IPO?
You can apply through online trading platforms, brokers, or the ASBA facility via your bank.
What risks should I consider?
Key risks include market fluctuations, competition in the food delivery sector, and changes in regulations that could impact Swiggy’s performance.