New Delhi: Online food delivery platform Swiggy is all set to make its stock market debut on Wednesday after the company looks to raise Rs 11,327 crore through its IPO.

Swiggy IPO: Will Investors Make Money?

Shivani Nyati, Head of Wealth at Swastika Investmart Ltd said that a cautious approach needed for the Swiggy IPO. “Swiggy, a leading player in India’s burgeoning food delivery and e-commerce sector, is set to make its stock market debut. While the IPO received a decent subscription of 3.59 times, the current grey market premium (GMP) of around ₹1 (0.26%) indicates a muted investor response. This subdued sentiment is likely influenced by the company’s continued losses, despite steady revenue growth” Nyati said.

The IPO’s valuation, while appearing reasonable based on certain metrics, presents a challenge due to negative earnings. Additionally, the current volatile market conditions may further impact the listing performance, she added.

“Given these factors, a cautious approach is recommended. Investors with a high-risk tolerance and a long-term perspective may consider the IPO, but it’s essential to acknowledge the potential risks associated with the company’s current financial position and the broader market uncertainties,” Nyati said.

 

 

 

Swiggy IPO Subscription

Swiggy’s Rs 11,327 crore IPO was subscribed 3.59 times on the last day of bidding on Friday after a muted response from the investors in the initial two days of its public issue.

Swiggy IPO was subscribed 0.35 times and 0.12 times on the issue’s second and first day, respectively. The reserve portion of qualified institutional buyers (QIBs) subscribed 6.02 times, the non-institutional investors (NIIs) portion saw 0.41 times subscription, the retail individual investors (RIIs) portion subscribed 1.14 times, and the employee portion subscription was 1.65 times.

The company has fixed a price band between Rs 371 and Rs 390.

Mumbai: Real estate developers in India raised Rs 12,801 crore via qualified institutional placements (QIPs) in the first nine months this year, which is over 17 per cent of the total QIP issuance across sectors at Rs 75,923 crore, a report showed on Monday. After renewable energy, real estate came in second highest among sectors to raise funds through QIP so far this year.

“This strong QIP activity highlights the sector’s crucial role in India’s broader capital markets – and the institutional investors’ growing confidence in Indian real estate,” said Anuj Puri, Chairman, Anarock Group.

According to the report, enhanced transparency, a robust post-pandemic residential real estate recovery, and strong investor confidence are factors driving a surge in activity, thereby positioning the sector for continued growth.

The QIP route allows publicly-traded companies to raise capital by offering equities or securities convertible into equity to pre-approved institutional buyers. This fundraising approach lets companies skip the more conventional initial public offering (IPO) route and quickly raise substantial funds.

Robust housing sales growth after the pandemic has prompted leading developers to unleash relevant inventory across markets. As per the report, over 13.62 lakh units have been launched across the top seven cities between 2021 and this year (January-September).

Concurrently, housing sales in these cities have soared to nearly 14.36 lakh units in this period. Effervescent sales led to an over 10 per cent decline in unsold housing inventory in this period, despite the high rate of supply addition.

To fund their aggressive expansion, these developers are turning to IPOs and the QIP route. Their success in these capitalisation efforts underscore the sector’s continued ability to attract both retail and institutional investors. We expect investor participation to grow manifold in the coming years,” said Puri.

Simultaneously, the strong post-pandemic homebuyers demand has also prompted developers to raise funds via IPOs to fund new project launches across geographies. Since 2021, six developers have collectively raised Rs 5,275 crore through mainstream IPOs.

New Delhi: Shares of Hyundai Motor India Ltd, the Indian arm of South Korean automaker Hyundai, on Tuesday listed with a discount of over 1 per cent against the issue price of Rs 1,960.

The stock listed at Rs 1,931, reflecting a decline of 1.47 per cent from the issue price on the BSE. Later, the stock made some recovery and hit a high of Rs 1,968.80, up 0.44 per cent. But, the stock again declined 0.74 per cent to trade at Rs 1,945.40.

On the NSE, the stock made its debut at Rs 1,934, down 1.32 per cent.

The company’s market valuation stood at Rs 1,57,807.67 crore during the early trade.

The initial public offer of Hyundai Motor India Ltd got subscribed 2.37 times on the last day of the bidding on Thursday, helped by institutional buyers.

This was the largest IPO in the country, surpassing LIC’s initial share sale of Rs 21,000 crore.

The Rs 27,870 crore initial share sale had a price band of Rs 1,865-1,960 per share.

The initial public offer (IPO) was entirely an Offer For Sale (OFS) of 14,21,94,700 equity shares by promoter Hyundai Motor Company (HMC), with no fresh issue component.

HMIL commenced operations in India in 1996 and currently sells 13 models across segments.

In the equity market, the BSE Sensex traded 295.97 points higher at 81,447.24 and the NSE Nifty quoted 72.35 points up at 24,853.45.

New Delhi/Seoul: Hyundai Motor India is all set to make its stock market debut tomorrow, with shares likely to start trading on the Indian stock market.

This is Hyundai Motor’s first listing outside South Korea and the largest IPO in the history of the Indian stock market. The Indian subsidiary of South Korean automotive giant has surpassed the previous record set by the Life Insurance Corporation of India (LIC) in 2022, which then raised $2.5 billion.

The IPO price band has been fixed at Rs 1,865-Rs 1,960 per share. The IPO is a pure offer for sale (OFS) and the entire proceeds will go to the promoter.

Hyundai Motor India Latest GMP 

As per reports, the Hyundai Motor India latest GMP suggests a 5% premium of Rs 101-107 w.r.t its issue price of Rs Rs 1,865-Rs 1,960 per share apiece, suggesting that the scrip will trade higher on its stock market debut.  It must however be noted that since grey market premium is the parameter driven from unlisted market, the real time value on stock market can vary.

Hyundai Motor India is the second-biggest carmaker in India, following Japan’s Maruti Suzuki. Industry observers are keen on whether the company can enhance its local competitiveness through the listing on the Indian stock market.

The South Korean automotive giant has made aggressive investments in India in recent years.

Last year, Hyundai acquired General Motors’ manufacturing plant in India’s western city of Pune. The company is currently upgrading the facility with a smart manufacturing system, aiming to achieve a production capacity of over 200,000 units annually.