Domestic brokerage Geojit Financial has issued ‘Subscribe’ rating on Swiggy IPO, citing the food delivery platform’s strong brand presence and growth potential. The brokerage has assigned the rating for the issue on a long term investment basis, considering its strong brand recall, diversified offerings, integrated app, rapid scaling, consistent innovation, expansion of dark stores, and promising industry outlook.
The company reported a revenue CAGR of approximately 40 per cent during FY22-24, reaching ₹11,247 crore in FY24.
The online food delivery market in India is projected to reach ₹1,40,000- ₹1,70,000 crore by 2028, growing at a CAGR of 17-22 per cent.
Also: Track Swiggy IPO Subscription Status Live
The initial public offering (IPO) of food delivery platform Swiggy opened to a muted response on Wednesday, with retail investors subscribing 0.54 times their portion and employees booking 0.74 times of their reserved segment. The institutional and non-institutional portions saw minimal participation at 0.07 times each.
At the upper price band of ₹390, Swiggy is valued at 7.8 times its FY24 sales, which analysts consider fairly priced.
The ₹11,327.43 crore IPO, priced at ₹371-390 per share, comprises a fresh issue of ₹4,499 crore and an offer for sale worth ₹6,828.43 crore. The issue will close on November 8, with a minimum lot size of 38 shares.
Despite ongoing profitability challenges and negative operational cash flows, brokers remain optimistic about Swiggy’s expansion plans, particularly its dark store strategy and diversification into non-grocery categories.
