Credence Investments’ Post

Swiggy is about to make history with a whopping ₹10,000 crore IPO! Investors are buzzing, especially after seeing Zomato’s 120% stock price jump in just one year. 🎉 But here’s the kicker: when Zomato went public, many were skeptical due to their losses, post-pandemic uncertainties, and the fact that no one saw the power of their data. Fast forward to today, and Swiggy finds itself in a similar situation—losses, a shaky market, and investors asking, “Why should we invest in Swiggy?” 🤔 Well, to clear the air, I’ve dived into their 400-page DRHP and uncovered some major insights that can help you make sense of this massive IPO.                                                                                                              For a deep dive, check out Think School’s detailed case study on YouTube: Swiggy IPO: Goldmine or Disaster? 💬 What’s your take? Is Swiggy the next big thing, or a risky bet? Let’s discuss below! #SwiggyIPO #InvestmentTips #MarketInsights #IPO2024 #StartupIndia #ThinkSchool

𝐍𝐞𝐰𝐬 - 𝟑𝟕 (𝟏𝟒.𝟏𝟏.𝟐𝟎𝟐𝟒) 𝑆𝑤𝑖𝑔𝑔𝑦 𝑇𝑜𝑝𝑠 𝐸𝑥𝑝𝑒𝑐𝑡𝑎𝑡𝑖𝑜𝑛𝑠 𝑤𝑖𝑡ℎ 𝐵𝑒𝑠𝑡 𝑀𝑎𝑗𝑜𝑟 𝐿𝑖𝑠𝑡𝑖𝑛𝑔 𝑖𝑛 𝑎 𝐷𝑒𝑐𝑎𝑑𝑒 𝐒𝐮𝐦𝐦𝐚𝐫𝐲 This news article discusses the successful listing of Swiggy on the Indian stock market. The stock closed 17% above its initial public offering (IPO) price, making it one of the best IPO listings in recent years. The article highlights the strong investor interest in Swiggy's IPO, which was oversubscribed 3.59 times. It also discusses the company's financial performance, including its revenue growth and increasing losses. Finally, the article mentions the valuations of Swiggy's investors, including SoftBank and Prosus, which have significantly increased after the IPO. 𝐊𝐞𝐲 𝐏𝐨𝐢𝐧𝐭𝐬 𝐒𝐮𝐜𝐜𝐞𝐬𝐬𝐟𝐮𝐥 𝐋𝐢𝐬𝐭𝐢𝐧𝐠: Swiggy listed at a 5.6% premium to its IPO price and closed 17% higher. 𝐒𝐭𝐫𝐨𝐧𝐠 𝐈𝐧𝐯𝐞𝐬𝐭𝐨𝐫 𝐈𝐧𝐭𝐞𝐫𝐞𝐬𝐭: The IPO was oversubscribed 3.59 times, with strong demand from institutional investors. 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐏𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞: Revenue growth of 34% in the first quarter of FY25. Net loss widened to ₹611 crore in the same period. 𝐈𝐧𝐯𝐞𝐬𝐭𝐨𝐫 𝐕𝐚𝐥𝐮𝐚𝐭𝐢𝐨𝐧𝐬: SoftBank's investment is now valued at close to $1 billion. Prosus's investment is valued at $3 billion. 𝐁𝐫𝐨𝐤𝐞𝐫𝐚𝐠𝐞 𝐑𝐚𝐭𝐢𝐧𝐠𝐬: Macquarie has initiated coverage on Swiggy with an "underperform" rating and a target price of ₹325. 𝐂𝐨𝐧𝐜𝐥𝐮𝐬𝐢𝐨𝐧 The successful listing of Swiggy marks a significant milestone for the Indian startup ecosystem. While the company has shown strong revenue growth, it is still facing challenges in terms of profitability. Investors should carefully consider the company's financial performance and future prospects before making investment decisions. The long-term success of Swiggy will depend on its ability to achieve profitability and sustain its growth momentum. 𝐍𝐢𝐟𝐭𝐲𝟓𝟎: ₹𝟐𝟑,𝟓𝟑𝟎.𝟕𝟎 𝐒𝐄𝐍𝐒𝐄𝐗: ₹𝟕𝟕,𝟓𝟕𝟑.𝟕𝟒 #Pune Institute of Business Management #Dr. Abhijeet Lele #Rishabh Kale #Dr. Ritesh Kumar Verma

The Prospectus of a company contains a sea of information! Over the past 15 years I developed this habit of reading few of them coming for an IPO, even though I am not an active investor in IPOs or in stocks. Swiggy RHP is a similar sea of information but what caught my eyes, being in VC world, is how Accel Partners invested in it multiple times in just under 3 years even though valuation of Swiggy grew double or triple over the previous round in the next round. With an IPO price range of ₹371 to ₹390, Accel is making an average of 33X on it's investment as it's weighted average cost of Swiggy shares is ₹11.17. However, the return for it's first round of investment would be around 200X when it invested in Swiggy at less than $10Mn valuation! Accel holds 10.50Cr shares in Swiggy, out of which it is selling just 1.05Cr shares in the IPO and balance it will hold for the time being. Which means, on a rough calculation, it is expected to receive approx ₹4000 Crore from Swiggy stake itself assuming the IPO price range. That's a massive massive return and infact Accel is getting approx 1.50X return of it's entire Fund IV just from Swiggy investment and it also has few more potential fund returners in it's kitty. #RHP #Prospectus #IPO #Swiggy #VCs #Funds #Investing #investment

Swiggy’s IPO & Wealth Creation: Lessons from Zomato ▶️ Swiggy’s Recent IPO: ↳Swiggy’s IPO raised ₹11,300 Cr, making it one of the biggest since Paytm’s 2021 listing. ↳The listing price was ₹390, but it opened at ₹420, a 7.69% premium. ↳The IPO was oversubscribed by over three times the initial offering. ▶️ Employee Wealth Creation via ESOPs: ↳Swiggy unlocked ₹9,000 Cr worth of ESOPs. ↳Around 500 current and former employees turned crorepatis. ▶️ Zomato’s Experience Post-IPO: ↳Zomato’s IPO in 2021 turned many employees into millionaires. ↳CEO Deepinder Goyal noticed complacency set in after the sudden wealth. ↳Some employees lost their drive, slowing company growth. ▶️ Goyal’s Organizational Restructure: ↳Goyal had to clear out roles and reboot the company to restore momentum. ↳He emphasized the challenge of balancing employee financial gains with continued motivation and progress. 📌 Key Takeaway for Swiggy: ✅ While Swiggy’s IPO is a financial win, Goyal’s experience with Zomato shows that maintaining drive and innovation post-IPO is crucial for long-term success. ♻️ What’s Next for Swiggy? ➡️ Will Swiggy manage to avoid the complacency trap, or will it face similar challenges? ➕ Image Source: Google #IPO #Swiggy #Zomato #Leadership #WealthCreation #TechIndustry

🚨 Swiggy’s Valuation Cut & IPO Outlook: What Investors Need to Know 🚨 Swiggy recently revised its IPO valuation range to $11.3-$11.5 billion from the previously sought $12-$15 billion. This strategic adjustment reflects some cautionary signals from the market and could impact early investors, especially those who purchased Swiggy shares at a premium in the unlisted market. As a Wealth Mantra follower, here’s a closer look at the key risks and opportunities at play. 💼 Key Reasons for Valuation Adjustment 1. Market Sentiments in India: Investors are witnessing heightened caution in the Indian markets, especially after Hyundai’s IPO debut at a discount, signaling a less enthusiastic environment for IPOs. 2. Offer for Sale (OFS): A large portion of Swiggy’s IPO comprises shares being sold by existing investors through OFS, rather than fresh equity. This structure has some investors cautious, as it may indicate limited new growth capital or expansion-focused reinvestment. 🔒 Risks for Pre-IPO Investors For those, like myself, who purchased Swiggy shares at a premium in the unlisted market, here are some considerations: 6-Month Lock-In Period: As per SEBI’s recent norms, pre-IPO shareholders face a mandatory six-month lock-in period. During this time, any volatility or potential dip in valuation could be concerning, as liquidation options are restricted. Valuation Dip Risk: The market's cautious outlook may lead to Swiggy’s valuation dipping further, and those who invested in unlisted shares at a premium could face initial losses. 💡 Investment Takeaway The Swiggy IPO offers a valuable insight into market psychology and institutional strategy. For early investors, the focus should remain on long-term growth potential, given that market sentiment can be volatile. However, it's essential to approach with a balanced perspective, aware of both potential gains and immediate challenges. Wealth Mantra’s Tip: As always, evaluate the broader trends influencing the IPO market. Market uncertainties can offer unique entry points for well-prepared investors—but be mindful of the risks tied to lock-ins and IPO structuring! #WealthMantra #SwiggyIPO #MarketOutlook #UnlistedMarket #InvestingStrategies #IPO

The buzz around Swiggy's shares in the unlisted market can be attributed to several key factors”💥🔥: Why the Buzz? 1 - Upcoming IPO Speculation: There's significant speculation about Swiggy potentially launching an Initial Public Offering (IPO) soon. Whenever there's IPO talk, it tends to generate excitement among investors as they anticipate potentially high returns once the company goes public. 2 - Success of Zomato IPO: Swiggy's main competitor, Zomato, had a highly successful IPO earlier. Zomato's listing created optimism around similar tech companies, including Swiggy, pushing demand for Swiggy shares in the unlisted market. 3 - Performance in Food Delivery Space: Swiggy has been consistently performing well in India's fast-growing food delivery market. Their diversified services, including Instamart and Genie, are also contributing positively to their brand value, attracting investor interest. The Market Favouring Swiggy? 1 - Valuation Surge: As buzz around Swiggy's IPO grows, its valuation is expected to rise, leading investors in the unlisted market to rush to buy shares. These investors hope to capitalize on the price difference when the stock goes public. 2 - High Demand for Tech Unicorns: Indian tech unicorns, especially in sectors like food delivery and e-commerce, are currently highly sought after. The success of other high-profile tech IPOs has further boosted demand for companies like Swiggy in the unlisted market. 3 - Potential for Future Growth: Investors are betting on Swiggy's long-term growth, especially in areas beyond food delivery, such as grocery delivery (Instamart) and other services. The prospect of tapping into these additional revenue streams adds to Swiggy’s appeal. In essence, the IPO speculation combined with Swiggy's strong performance in a booming sector has fueled a surge in demand for its shares in the unlisted market. #Finance #FinanceNews #StockMarket #IPO #Swiggy #finmint

Swiggy’s share surged by 19% on their debut trading day! But even if you weren’t allotted the shares, I have made a quick 22min video with Shashank Udupa deconstructing everything about it. So, if you’re still planning to invest in Swiggy shares, now that it's listed, you need to watch this video. In this Market’s by 1% Club episode, we have covered: 📊 Key financial insights on Swiggy’s journey 💼 Lessons from Zomato’s IPO and how they turned profitable 💡 The roadmap for Swiggy to achieve profitability 🔑 How you can invest in companies before they go public ⚖️ The risks and rewards of investing in Swiggy’s IPO For all those who want to see the entire episode, I’ll be adding the link in the comments section. Do you think the share price will keep going up? Let me know below! #swiggy #zomato #IPO #stockmarket #MarketsbyOnePercentClub

Swiggy's Big IPO Bet: Will It Be the Second Largest or Fall Short? 1) Valuation: - Targeting a valuation of $12.5 billion-$13.5 billion - Revised downwards by 10-16% due to market volatility. Earlier Swiggy was targeting a $15 billion Valuation for its $1.4 billion, making it the second largest IPO after Hyundai. 2) IPO Structure and Financial Performance: - Fresh issue of equity shares worth ₹3,750 crore - Offer-for-sale of 185,286,265 equity shares by existing shareholders - Reduced losses by 43% in FY24 to ₹2,350 crore - Operating revenue grew to ₹11,247.39 crore in FY24 - Quick commerce revenue soared by 108% to ₹374 crore in the June quarter 3) Market Context: - India's IPO market has been buoyant, with around 270 companies raising $12.57 billion this year - Despite recent market volatility, Swiggy's IPO is expected to be a significant event in the fintech and e-commerce space #SwiggyIPO #Foodtech #Ecommerce #IndianIPO #StartupIndia #MarketVolatility #Investment #StockMarket #BusinessNews #IPOWatch #Valuation #Hyndai

🚀 Exciting News! Swiggy's IPO is here! 🌟 Swiggy is set to raise ₹11,327.43 crore with its IPO, opening for subscription from November 6 to November 8, 2024. This issue includes both a fresh issue worth ₹4,499 crore and an offer for sale worth ₹6,828.43 crore. 📈 💵 Price Band: ₹371 - ₹390 per share 📅 Allotment Date: November 11, 2024 📈 Listing Date: November 13, 2024, on BSE and NSE Investors, take note of the minimum lot sizes: 👉 Retail Investors: 38 shares, ₹14,820 👉 sNII: 14 lots, ₹207,480 👉 bNII: 68 lots, ₹1,007,760 And for Swiggy employees, there's an exclusive reservation of 750,000 shares with a discount of ₹25 per share! 💼 📢 Ready to make your move? Don’t miss this exciting opportunity! #SwiggyIPO #InvestmentOpportunity #StockMarket #IPOAlert #Swiggy #Investment #StockListing #IndianMarket #RetailInvestors #BSE #NSE #FinancialMarkets

Swiggy’s IPO: Why Are Investors Hesitating? Swiggy’s IPO has generated a mixed reaction, with only 35% subscription uptake by day two. Here’s a closer look at the factors giving investors pause: 🔹 Market Volatility: Amid recent stock market fluctuations, investor sentiment has turned cautious. Many are opting for a ‘wait and watch’ strategy as they assess the potential risks in the current unpredictable climate. 🔹 Intense Competition: Quick commerce is a fiercely competitive arena. With rivals like Zomato and emerging platforms vying for market share, investors may be questioning Swiggy’s ability to maintain a strong foothold and sustain growth. 🔹 Financial Track Record: While Swiggy has shown impressive revenue growth, its consistent losses in recent years cast a shadow over profitability—a key concern for those eyeing long-term returns. 🔹 Valuation Adjustments: Swiggy’s recent valuation cut to $11.3 billion signals a more cautious outlook. This recalibration might make the IPO more accessible, but it also reflects a tempered enthusiasm from stakeholders. Interestingly, while there’s some hesitation from larger investors, retail investors appear willing to take a chance. The retail investor segment has reached 84% subscription, while non-institutional investors have subscribed to only 14%. The qualified institutional buyers (QIBs) segment is at 28% subscription, and the employee portion has seen 1.15 times subscription. Quick commerce is a dynamic yet challenging industry. It holds immense promise for high returns, but companies like Swiggy must navigate the delicate balance between expansion and profitability. This IPO will be one to watch as it unfolds! #swiggy #IPO #investment #quickcommerce #RetailInvestors #InvestmentTrends #MarketVolatility #IPO #InvestorInsights #TechStocks #Startups #FinancialGrowth #FoodDelivery #Investors