Swiggy Announces ₹11,327.43 Cr IPO

Key Takeaways from the IPO

• Swiggy’s IPO, with an issue size of ₹11,327.43 crore, opens for subscription on November 6 and closes on November 8, 2024.
• Proceeds will fund Scootsy debt repayment, quick commerce expansion, tech infrastructure, and brand marketing.
• Shares are expected to list on BSE and NSE on November 13, 2024.

The IPO will consist of a fresh issue of 115.4 million shares, raising ₹4,499 crore, and an offer for sale (OFS) of 175.1 million shares, aggregating ₹6,828.43 crore. Shares will carry a face value of ₹1 each, with the price band set at ₹371 to ₹390 per share. Additionally, 750,000 shares are reserved for eligible employees, offered at a discount of ₹25 per share.

The IPO will be open for subscription from November 6 to November 8, 2024. The allotment of shares is set to be finalised on November 11, 2024, with refunds and crediting of shares in Demat accounts on November 12, 2024. Swiggy’s shares are expected to list on BSE and NSE on November 13, 2024.

Investors are required to place bids in multiples of 38 shares, with the minimum investment set at ₹14,820 for retail investors. Retail investors can apply for up to 13 lots or 494 shares, amounting to ₹192,660. Small High Net-worth Individuals (S-HNI) can start investing from 14 lots (532 shares) totalling ₹207,480, while Big High Net-worth Individuals (B-HNI) have a minimum investment requirement of 68 lots (2,584 shares), totalling ₹1,007,760.

The IPO allocation is structured to reserve 75% of shares for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 10% for Retail Individual Bidders (RIB). The IPO’s lead managers include Kotak Mahindra Capital, Citigroup Global Markets, Jefferies India, Avendus Capital, J.P. Morgan India, Bofa Securities, and ICICI Securities, with Link Intime India Pvt Ltd acting as the registrar.

Swiggy plans to utilise the IPO proceeds to drive growth through multiple strategic initiatives. A portion of the funds will go towards its investment in Scootsy, allowing Swiggy to repay or pre-pay select borrowings, which will strengthen its balance sheet. Additionally, Swiggy is set to expand its quick commerce segment by establishing and maintaining dark stores; for this, ₹7,554 million will be allocated to set up new dark stores and ₹4,233 million for lease and license payments. Enhancing technology and cloud infrastructure is also a priority, with ₹7,034 million designated to improve service efficiency and scalability. To increase its visibility across both the food delivery and quick commerce sectors, Swiggy has earmarked ₹11,153 million for brand marketing and business promotion. Furthermore, Swiggy intends to allocate funds towards inorganic growth, preparing for future acquisitions, and addressing general corporate needs, although the exact amount remains undetermined.

About Swiggy Limited

Swiggy is a tech-enabled platform that enables users to browse, order, and pay for food delivery through its app. It offers grocery and household item delivery through Instamart. Swiggy's network of delivery partners ensures timely doorstep delivery. Other services include restaurant reservations (Dineout), event bookings (SteppinOut), product pick-up and drop-off (Genie), and various hyperlocal commerce options with Swiggy Minis.

Key Takeaways from the Launch

• Gateway Distriparks launches Double Stack Rail services at ICD Faridabad.
• This makes ICD Faridabad the first in the region to offer such services.
• Direct connectivity was established with major seaports via the Western Dedicated Freight Corridor.
• The new service enhances the carrying capacity and productivity of GDL’s trainsets.

This significant milestone makes ICD Faridabad the first and only location in the region to offer double-stack services, providing a competitive advantage with direct connectivity to major seaports such as Mundra, Pipavav, and Nhava Sheva via the Western Dedicated Freight Corridor (WDFC).

The first mover advantage with strategic improvements puts Gateway Distriparks ahead as a front runner in the logistics segment, with three Double Stack services of GDL brought within its ambit through hubs at ICD Gurgaon and ICD Viramgam, which are connected via WDFC.

This will improve the carrying capacity on ICD Faridabad for GDL's 34 trainsets, thus enabling better movement of containers from all its other ICDs. Consequently, this would benefit exporters and importers across the Delhi NCR, Haryana, Uttar Pradesh, and nearby regions.

With up to 30% more capacity per trip, Double Stack services will help optimise freight costs, streamline operations, and reduce delivery times. By boosting supply chain reliability and decreasing the carbon footprint associated with transportation, this new service will contribute to sustainable economic growth in the area. Gateway Distriparks aims to lower carbon emissions through this initiative, aligning with the company’s commitment to environmental responsibility.

Commenting on the launch, Mr Prem Kishan Dass Gupta, Chairman & Managing Director – Gateway Distriparks, said: “The launch of Double Stack Rail services at ICD Faridabad reinforces our leadership in logistics innovation and efficiency. It reflects our commitment to enhancing supply chain reliability for our customers while promoting a more sustainable and efficient logistics ecosystem. We are confident that this strategic move will significantly benefit our customers by reducing transit times and logistics costs, ultimately contributing to the growth of the region's trade.” 

About Gateway Distriparks Limited

Gateway Distriparks is an integrated inter-modal logistics service provider in India, which offers comprehensive multimodal logistics solutions. It operates a strategic network of nine Inland Container Depots and Container Freight Stations spread across the country, which enhances connectivity within the logistics sector. Gateway Distriparks boasts an excellent fleet of 31 trainsets and more than 500 trailers, ensuring efficient transportation between its facilities and maritime ports to provide seamless first- and last-mile connectivity for the EXIM industry.

Gateway Distriparks offers general and bonded warehousing, rail and road transportation, container handling services, and many value-added services. They are supported by an extensive equipment base, including Reach Stackers, making them a prominent logistic player in India.

Key Takeaways from the IPO

• Niva Bupa Health Insurance IPO totals ₹2,200 crores with a fresh issue of ₹800 crores and an offer for sale of ₹1,400 crores.
• The price band is set between ₹70 and ₹74 per share; the minimum investment required is ₹14,800.
• IPO opens on November 7 and closes on November 11; listing is expected on November 14.
• Proceeds will primarily strengthen the capital base and maintain solvency levels.

The price band for the IPO is set between ₹70 and ₹74 per share, with a face value of ₹10 per share. Retail investors will need to invest a minimum of ₹14,800 to participate in the IPO, as the minimum lot size is 200 shares. The shares will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

The IPO is going to open on November 7, 2024, for subscription and will close on November 11, 2024. The basis of allotment will be finalised on November 12, 2024, and the refunds will begin on November 13, 2024. Credit of shares into demat accounts is most likely to be done the same day and trading in the shares is going to start from November 14, 2024. Investors should note that UPI mandate confirmation is going to be at 5 PM on November 11, 2024.

For retail investors, the minimum investment requirement is one lot, which consists of 200 shares priced at ₹14,800 at the lower end of the price band. The maximum permissible lot size for retail investors is 13 lots (2,600 shares), totalling ₹192,400. Small non-institutional investors (sNII) must invest a minimum of 14 lots (2,800 shares), amounting to ₹207,200. Large non-institutional investors (bNII) are required to invest a minimum of 68 lots (13,600 shares), equating to ₹1,006,400.

The reservation structure in the IPO shall ensure, at least, 75% of the net issuance to Qualified Institutional Buyers while, to the retail individual investors, at most 10% of the issue on a net basis, shall be reserved to Non-institutional investors at most.

The net proceeds of the initial public offering would be raised mainly for augmenting capital to maintain and strengthen its level of solvency with an allotment to the tune of ₹ 800 crores.

In terms of the additional issue for the process of public offering, the details are provided below: Qualified Institutional Buyers who make bids need to express the same in multiples amounting to ₹ 200,000. The cumulative sum of the bids will not exceed the total quantity of the issue amount available for bidding except the allocated portion to the anchor investors. NIIs have further been categorised into two subcategories. One-third of the allotment is for bidders investing between ₹200,000 and ₹1,000,000, and the remaining two-thirds is offered for bids exceeding ₹1,000,000. Retail investors are restricted to making bids only up to the amount of ₹200,000.

The ASBA process with UPI integration for eligible retail investors will be used for the bidding process. The lot size for bidding has been kept at 200 shares, and bids are to be made in multiples of that. Shares will be allotted in dematerialised form, with a minimum trading lot of one equity share.

Key Takeaways from Premier Energies Order Acquisition:

• Premier Energies has secured multiple orders worth Rs 560 crore from two major Independent Power Producers (IPPs) and others.
• The contracts include Rs 513 crore for solar modules and Rs 47 crore for solar cells.
• Supply of the solar products will begin in December 2024 and is expected to conclude by May 2025.

This significant contract includes Rs 513 crore for the supply of solar modules and Rs 47 crore for solar cells, reinforcing the company’s position in the renewable energy sector.

The supply of these solar products is set to commence in December 2024, with completion expected by May 2025. 

About Premier Energies Limited:

Established in 1995, Premier Energies is a leading manufacturer of solar cells and modules, headquartered in Hyderabad, India. Backed by GEF Capital, the company operates state-of-the-art facilities across Telangana, boasting an annual production capacity of 2 GW for solar cells and 3.36 GW for solar modules. Premier Energies is committed to sustainability and innovation, exemplified by its LEED Gold certified manufacturing facility and plans to introduce advanced TOPCon cell technology. With a focus on high-quality products, the company has earned recognition for its performance, reliability, and employee engagement, striving to contribute to a carbon-free future.