Swiggy, one of India’s leading food delivery platforms, is preparing to make its stock market debut with its Initial Public Offering (IPO) scheduled to open on November 6, 2024. This IPO is a significant move for Swiggy as it aims to raise over ₹11,000 crore from the primary market. The offering will be available for subscription until November 8, 2024, with shares expected to be listed on the stock exchanges on November 13, 2024.
Key Details of the Swiggy IPO
- Price Band: The price band for Swiggy’s IPO is set between ₹371 and ₹390 per share. Investors can choose any price within this range to bid for shares.
- Issue Size: Swiggy plans to raise ₹11,327.43 crore through this IPO. This amount includes a fresh issue of 11.54 crore equity shares, amounting to ₹4,499 crore, and an offer for sale of 17.51 crore shares valued at ₹6,828.43 crore.
- Lot Size: The minimum lot size for the Swiggy IPO is 38 shares. Therefore, investors need to bid for at least 38 shares to participate in the IPO.
- Minimum Investment: To invest in the Swiggy IPO, the minimum amount required is ₹14,820, which is the cost of one lot at the upper end of the price band.
Subscription and Allotment Process
Swiggy’s IPO will open for public subscription on November 6, 2024, and close on November 8, 2024. The allotment date is likely to be November 11, with shares credited to successful investors’ demat accounts on November 12. Unsuccessful bidders will receive their refunds on the same day. The shares are expected to start trading on the stock exchanges on November 13, 2024.
There has been significant interest from investors in the Swiggy IPO. Notable institutional investors, including Norway’s sovereign wealth fund Norges and Fidelity, have reportedly placed bids worth over $15 billion, which is 25 times the portion reserved for such investors. This high level of demand suggests strong confidence in Swiggy’s growth prospects and market position.
As of now, the Grey Market Premium (GMP) for Swiggy’s IPO is around ₹22 per share. This indicates that shares are currently being traded at a premium in the grey market, reflecting positive sentiment among traders and investors. The GMP is an important indicator of potential listing gains, as it shows how the shares are expected to perform when they officially enter the stock market.
While the Swiggy IPO presents an exciting investment opportunity, potential investors should also be aware of the risks involved. Factors such as economic slowdowns, increased competition in the food delivery market, and regulatory changes could impact Swiggy’s business and profitability.
The Swiggy IPO offers a chance for investors to invest in a prominent and fast-growing company in the food delivery sector. However, it is essential for investors to conduct their own research and consider the associated risks before deciding to invest. As the IPO date approaches, market sentiment and investor interest will likely play crucial roles in determining the success of this offering.
