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PremiumSwiggy IPO Day 2 Updates: The initial public offer of Swiggy IPO has been subscribed 35% on the second day of subscription today, as per BSE data.
The initial share sale received bid for 5,57,09,140 shares against 16,01,09,703 shares on offer, according to BSE.
The portion for retail investors received 84% subscription while the quota for non-institutional investors got subscribed 14%. The qualified institutional buyers (QIBs) part is booked 28%. The employee portion has been subscribed 1.15 times.
Bengaluru-based Swiggy's shares opened for public subscription in the price band of ₹371 to ₹390 on Wednesday, November 6. The IPO will remain open till Friday, November 8.
At the end of the first day of bidding, Swiggy IPO was subscribed 12%. The IPO received bids for 1,89,80,620 shares as against 16,01,09,703 shares on offer.
The portion reserved for employees was booked the most at 74%, followed by retail investors' quota at 54%.
Non-institutional investors (NIIs) portion received 6% bids at the end of day 1 while the qualified institutional buyers (QIB) quota did not see any bids.
The food delivery giant has attracted significant interest from institutional investors, collecting ₹5,085.02 crore through the anchor book launched on November 5. The company aims to raise ₹11,327 crore from the IPO, which will include a fresh issue of shares valued at ₹4,499 crore alongside an offer for sale (OFS) of ₹6,828 crore.
The secondary share involves exits or partial exits by venture capital firms Accel India, Tencent Cloud Europe, and Alpha Wave Ventures, with early investors having put in between ₹11.17 and ₹178.90 per share, based on their entry timing into the company, according to the disclosures provided.
The company aims to use the proceeds from the new issue for investments in technology and cloud infrastructure; brand marketing and business promotion; repaying debt; as well as allocating funds for inorganic growth and general corporate purposes.
Swiggy, established in 2014, reported a loss of ₹611 crore for the quarter that ended in June 2024, slightly increasing from ₹564 crore during the corresponding period a year ago.
Stay tuned for review, subscription status, more.
Swiggy's IPO has opened for susbcription. Investors can now start bidding for the three-day public offer. The IPO is one of the biggest issues for 2024. The first day of bidding will close at 5 pm today.
"Given its consistent innovation and strategic expansion, we believe Swiggy is well-positioned for sustained growth. Making it a compelling opportunity for investors seeking exposure in the evolving hyperlocal commerce space. Hence, by looking at all attributes, we recommend investors to "SUBSCRIBE" to Swiggy Ltd for a long-term perspective," said Rajan Shinde, Research Analyst at Mehta Equities.
Kotak Mahindra Capital Company, Citigroup Global Markets India Private Limited, Jefferies India Private Limited, Avendus Capital Private Limited, JP Morgan India Private Limited, BofA Securities India Limited and ICICI Securities Limited are the book-running lead managers to the issue.
Meanwhile, Link Intime India Private Limited is the registrar for Swiggy's IPO.
As per the red herring prospectus (RHP), the company's sole listed peer is Zomato (with a P/E of 634.50). According to reports, Swiggy's valuation is estimated to be around USD 11.3 billion (approximately ₹95,000 crore) at the highest price band. Meanwhile, competitor Zomato, which entered the public market in July 2021, has a market valuation of ₹2.13 lakh crore.
Tentatively, Swiggy IPO basis of allotment of shares will be finalised on Monday, November 11, and the company will initiate refunds on Tuesday, November 12, while the shares will be credited to the demat account of allottees on the same day following refund. Swiggy share price is likely to be listed on BSE and NSE on Wednesday, November 13.
A day prior to its initial public offering, food delivery and quick-commerce giant Swiggy announced on Tuesday that it has raised ₹5,085 crore from anchor investors.
The list of investors who received share allocations includes New World Fund Inc, Government Pension Fund Global, Nomura Funds Ireland Public Limited Company, Fidelity Funds, BlackRock, Allianz Global Investors Fund, and Schroder International, as stated in a circular posted on BSE's website.
Furthermore, ICICI Prudential Mutual Fund (MF), SBI Mutual Fund, HDFC Life Insurance Company Ltd, SBI Life Insurance Co. Ltd, and ICICI Prudential Life Insurance Company Ltd were also granted shares in the anchor round.
Swiggy IPO has reserved not less than 75% of the shares in the public issue for qualified institutional buyers (QIB), not more than 15% for non-institutional Institutional Investors (NII), and not more than 10% of the offer is reserved for retail investors. Employees are reserved up to 750,000 equity shares. A discount of ₹25 apiece is being offered to the eligible employees.
Swiggy IPO GMP today is +18. This indicates Swiggy share price was trading at a premium of ₹18 in the grey market, according to investorgain.com.
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Swiggy share price is indicated at ₹408 apiece, which is 4.62% higher than the IPO price of ₹390.
According to the grey market activities over the last 14 sessions, the present GMP of ₹12 indicates a downward trend. The minimum GMP recorded is ₹0, while the maximum GMP stands at ₹25, as reported by experts at investorgain.com.
'Grey market premium' indicates investors' readiness to pay more than the issue price.
