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.

Last Updated:November 02, 2024, 15:52 IST

Unlisted shares of Swiggy Ltd are currently trading just Rs 22 higher in the grey market, signalling a 5.64 per cent listing gain from the public issue.

The Swiggy IPO will be available for subscription between November 6 and November 8.

Swiggy IPO: Food and grocery delivery major Swiggy will launch its initial public offering (IPO) on Wednesday or November 6, 2024. The Rs 11,300-crore IPO will be concluded on November 8. The price band of the IPO has been fixed in the range of Rs 371 to Rs 390 apiece. According to market observers, the grey market activity currently suggests a muted interest in the IPO as Swiggy’s unlisted shares are currently trading at just a 5.64 per cent premium.

Swiggy IPO: Opening Date, Allotment, Listing

The Swiggy IPO will be available for public subscription between November 6 and November 8. The allotment will be finalised on November 11 and shares listing will take place on both BSE and NSE on November 13.

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Swiggy IPO: Price Band and Lot Size

The price band of the IPO has been fixed in the range of Rs 371 to Rs 390 apiece.

A lot size has been fixed as 38 shares. Retail investors need to apply for a minimum of one lot comprising 38 shares, or in multiple of 38 shares thereof.

The minimum lot size investment for small NII is 14 lots (532 shares), amounting to Rs 2,07,480, and for big NII, it is 68 lots (2,584 shares), amounting to Rs 10,07,760.

Swiggy IPO GMP Today

According to market observers, unlisted shares of Swiggy Ltd are currently trading just Rs 22 higher in the grey market than its issue price. The Rs 22 grey market premium or GMP means the grey market is expecting a 5.64 per cent listing gain from the public issue.

The GMP is based on market sentiments and keeps changing. ‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.

Swiggy IPO More Details

Big investors including Norway’s sovereign wealth fund Norges and Fidelity have placed bids worth more than $15 billion in the Swiggy IPO, 25 times the $605 million portion reserved for such investors, according to Reuters.

Swiggy is one of the most valued new-age consumer brands to tap the Indian capital market. The company’s Rs 11,300-crore IPO is a combination of fresh issue of shares worth Rs 4,500 crore and an offer for sale (OFS) of Rs 6,800 crore, they added.

Those selling shares in the OFS route are — Accel India IV (Mauritius) Ltd, Apoletto Asia Ltd, Alpha Wave Ventures, LP, Coatue PE Asia XI LLC, DST EuroAsia V B.V, Elevation Capital V Ltd, Inspired Elite Investments Ltd, MIH India Food Holdings B.V, Norwest Venture Partners VII-A Mauritius and Tencent Cloud Europe B.V.

Early investors like Accel, Elevation Capital and Norwest Ventures are making up to 35 times in returns on the portion they decided to sell. On the other hand, SoftBank continues to stay invested.

Going by the IPO papers, proceeds from the fresh issue to the tune of Rs 137.41 crore will be used for debt payment of subsidiary Scootsy.

Additionally, Rs 982.40 crore will be invested in Scootsy for expanding the Dark Store network in the quick commerce segment, with Rs 559.10 crore allocated for setting up dark stores and Rs 423.30 crore for lease or licence payments.

The company will also invest Rs 586.20 crore in technology and cloud infrastructure, Rs 929.50 crore for brand marketing and business promotion, and funds will be allocated for inorganic growth and general corporate purposes.

Founded in 2014, Swiggy had a valuation of nearly USD 13 billion in April. The company’s annual revenue stood at USD 1.09 billion as on March 31, 2023, and has more than 4,700 employees, according to Tracxn, a global startup data platform.

Swiggy’s confidential offer document was approved by Sebi in September and following this updated draft papers were filed.

The company filed its offer document on April 30 through the confidential pre-filing route.

Under the confidential filing process, Sebi reviews confidential DRHP and provides comments on it. Thereafter, the company going public is required to file an update to the confidential DRHP (UDRHP-I) after incorporating the regulator’s comments. This UPDRHP-I is made available for public comments over 21 days.

Finally, after incorporating the changes due to public comments, the company is required to update the DRHP-II (UDRHP-II).

In April, sources had previously stated that Swiggy received shareholders’ approval for an IPO to raise Rs 10,414 crore through issue of fresh equity shares and an offer for sale.

A special resolution was passed at an extraordinary general meeting of Swiggy on April 23, they stated.