Swiggy, the popular food delivery service based in Bengaluru, opened its Initial Public Offering (IPO) to the public on Wednesday, November 6, 2024. With today, November 8, marking the last day for subscriptions, Swiggy’s IPO has generated considerable interest from investors, including both large institutions and individual retail investors. Here’s of the latest updates, key numbers, and some important points to consider before investing.
Price Band and Important Dates
Swiggy has set its IPO price range between ₹371 and ₹390 per share. Investors had from November 6 until today, November 8, to submit bids. After the close of bidding, the IPO allotment date when shares are allocated to investors is scheduled for November 14, with the listing date set for November 16. This is when Swiggy shares are expected to start trading on the stock exchange, allowing public trading.
The Grey Market Premium (GMP) serves as an unofficial gauge of potential IPO performance. Currently, Swiggy’s shares are trading at a premium of ₹2 in the grey market. This means that some buyers are willing to pay ₹2 above the highest price band of ₹390, which suggests a mild positive sentiment. However, GMP can change quickly, and it isn’t always a reliable predictor of actual performance.
Swiggy IPO Subscription Status
According to data from the Bombay Stock Exchange (BSE), Swiggy’s IPO has achieved a 47% subscription rate by the final day of bidding. This reflects strong interest, with bids totaling around 7.45 crore shares against the 38.7 crore shares available. Here’s the breakdown of subscription rates across different investor categories:
- Retail Investors: Swiggy’s IPO has seen strong demand from retail investors, with this category reaching a 91% subscription rate.
- Qualified Institutional Buyers (QIB): Large institutional investors, such as banks and mutual funds, have subscribed to 46% of their allotted shares.
- Non-Institutional Investors (NII): This category, which includes high-net-worth individuals and companies, has subscribed to 16% of its allotment.
- Employees: Swiggy’s employees have shown strong interest, with this allocation subscribed 1.26 times. Employees also receive a special ₹25 discount per share as part of the IPO.
Swiggy’s IPO includes both a new issue of shares, raising ₹4,499 crore in fresh capital, and an Offer for Sale (OFS) from existing shareholders, totaling 17.5 crore shares. The funds raised through the new shares will help Swiggy expand its operations, invest in technology, and grow its popular platforms like Swiggy Food Delivery and Instamart, which delivers groceries and household products.
Founded in 2014, Swiggy has rapidly grown into one of India’s top food and grocery delivery platforms.
Swiggy’s IPO has captured significant interest across investor types, with retail investors leading in terms of subscription rates. With a high valuation and continued business growth, Swiggy’s shares could attract investors who are willing to take on the risk associated with a loss-making company. However, those with lower risk tolerance may want to assess the investment carefully before proceeding.
Ultimately, Swiggy’s IPO offers an opportunity to invest in one of India’s leading online platforms, but it’s essential for investors to consider both the potential rewards and the associated risks before making a final decision.
