Choice Equity Broking has issued a ‘Subscribe for the Long Term’ rating for Swiggy’s IPO, balancing the company’s strong market presence against ongoing profitability challenges. The food delivery platform’s public offering aims to raise ₹11,327 crore at a price range of ₹440-₹463 per share.
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The brokerage highlighted Swiggy’s robust revenue growth, with a CAGR of 40.4 percent between FY22 and FY24, while expressing caution over persistent negative EBITDA and profit margins. The company’s strategic expansion plans include developing ‘Dark Stores’ for faster delivery, upgrading technology infrastructure and increasing brand visibility.
Analysts view Swiggy’s diverse portfolio, which includes food delivery, grocery services and restaurant bookings, as a competitive advantage over rivals like Zomato. The recommendation reflects confidence in the company’s growing market share and operating reach despite the headwinds of continued losses.
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The IPO structure includes a fresh issue of ₹4,499 crore and an offer for sale worth ₹6,828.43 crore. The issue reserves 75 percent for qualified institutional buyers, 15 percent for non-institutional investors and 10 percent for retail investors, with an employee reservation of 750,000 shares at a discount of ₹25.
