Swiggy Ltd. and Zomato Ltd., India's top two food delivery service providers, will soon rival not just in fulfilling people's occasional cravings but also the stock market's appetite for growth in the hyper-competitive sector.
Swiggy is set to sell shares via an initial public offering next week. Zomato went public in 2021, during the post-Covid boom in primary market issues.
The online food delivery market in India is projected to reach a revenue of $44 billion in 2024 and show an annual growth rate of 16% in the next five years, according to Statista. The user penetration is projected to be 18.3% this year.
Swiggy IPO And Zomato IPO Compared
Price Band
The price band for Zomato shares during the IPO was Rs 72-76 per share. Swiggy has set the range from Rs 371-390 per share. Price band is the range within which investors can bid during the IPO period.
Lot Size
The minimum lot size for Zomato IPO was 195 shares. The size set for Swiggy is 38 shares.
Issue Size
Zomato offered to sell shares worth Rs 9,375 crore. This contained a fresh issue of Rs 9,000 crore and offer for sale of Rs 375 crore.
Swiggy IPO on the other hand is larger. It proposes to sell shares worth Rs 11,327 crore, consisting of a fresh issue of Rs 4,499 crore and an offer for sale of Rs 6,828 crore.
Valuation At Time Of IPO
Zomato was valued at Rs 59,623 crore at upper price band of the IPO in 2021.
Swiggy has valued itself at Rs 87,299 crore.
Shares Offered To Retail Investors
The number of shares offered to retail investors by Zomato was 18% of the total IPO.
Swiggy has proposed to offer 10% of the IPO to retail investors.
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