Choice Equity Broking has issued a “Subscribe for Long Term” rating for Swiggy’s IPO, balancing the company’s strong market presence against ongoing profitability challenges. The food delivery platform’s public offeringaims to raise ₹11,327 crore at a price band of ₹440-₹463 per share.
The brokerage highlighted Swiggy’s robust revenue growth, noting a 40.4 per cent CAGR from FY22 to 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 enhancing brand visibility.
Analysts view Swiggy’s diverse portfolio, encompassing food delivery, grocery services, and restaurant reservations, as a competitive advantage over rivals like Zomato. The recommendation reflects confidence in the company’s expanding market share and operational reach, despite the headwinds of consistent losses.
- Also read: Swiggy IPO subscribed 0.12 times on Day 1
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 per cent for qualified institutional buyers, 15 per cent for non-institutional investors, and 10 per cent for retail investors, with an employee reservation of 750,000 shares at a ₹25 discount.