Why Swiggy’s Unlisted Shares Are Creating Buzz Among Investors Before Its IPO

Swiggy, one of India’s top food delivery and quick-commerce platforms, is getting ready to go public with its much-anticipated IPO (Initial Public Offering) by the end of 2024. Before that happens, investors are buzzing about Swiggy’s unlisted shares, which have become increasingly popular in the pre-IPO market.

Let’s break down why Swiggy’s unlisted shares are grabbing so much attention and what this means for potential investors.

What Are Unlisted Shares?

Unlisted shares are stocks of a company that are not yet publicly traded on stock exchanges like the NSE or BSE. These shares can still be bought and sold in the over-the-counter (OTC) market before the company launches its IPO. Investors often see unlisted shares as an opportunity to invest early in a company that they believe will grow significantly after going public.

Why Are Swiggy’s Unlisted Shares Popular?

Swiggy, founded in 2014, has grown into one of India’s biggest food delivery platforms, operating in over 500 cities. It has expanded its services beyond food delivery into quick commerce with its grocery delivery platform, Instamart. Investors are particularly interested in Swiggy’s potential in this area, as the quick commerce sector is growing fast in India.

Here are some key reasons why Swiggy’s unlisted shares are generating excitement:

1. Steady Growth: Swiggy has shown steady growth over the past few years, even though the company is yet to turn a profit..
2. Strong Market Position: Swiggy controls about 43% of India’s online food delivery market, making it a formidable player alongside its competitor, Zomato. Swiggy’s growing influence in the quick-commerce space, particularly through Instamart, has also positioned it as a leader in grocery delivery.
3. High-Profile Investors: The excitement surrounding Swiggy’s unlisted shares has attracted big-name investors. For example, the family office of Bollywood icon Amitabh Bachchan and Motilal Oswal Financial Services’ Raamdeo Agrawal have both invested in Swiggy’s unlisted shares​. The involvement of such prominent figures adds credibility and raises further interest in the stock.

What’s Next for Swiggy?

Swiggy’s IPO is expected to take place by the end of 2024, and it could raise between ₹8,500 to ₹10,000 crore​

The company plans to use the funds from its IPO to enhance its delivery infrastructure, invest in technology, and further expand its quick commerce offerings. This could solidify Swiggy’s place in the competitive online food and grocery delivery markets.

Conclusion

Swiggy’s unlisted shares have become a hot topic among investors due to the company’s strong growth, potential for future expansion, and high-profile backers. While the unlisted shares offer an opportunity to invest early, they also come with risks, particularly around profitability and liquidity. As Swiggy gears up for its IPO, the performance of its unlisted shares in the pre-IPO market suggests high expectations from both retail and institutional investors.

For those looking to make a move in the pre-IPO market, Swiggy is definitely a company worth keeping an eye on.