Final Hours! Swiggy IPO closes today: GMP sees sharp decline; bid or avoid?

The initial public offering (IPO) of Swiggy, the online food and grocery delivery platform, which opened for public subscription on Wednesday, November 6, will close today, Friday, November 8, 2024.

 

The Rs 11,327.43 crore public offering for Swiggy, comprising a fresh issue of 115,358,974 shares and an offer for sale (OFS) of 175,087,863 shares with a face value of Re 1, has seen a muted response from investors so far, achieving 0.35 times subscription by the end of the second day, according to NSE data. Demand was highest among Retail Individual Investors (RIIs), who subscribed 0.84 times, followed by Qualified Institutional Buyers (QIBs) at 0.28 times, and Non-Institutional Investors (NIIs) at 0.14 times. The employee quota, however, was fully subscribed, reaching 1.15 times.

 

Swiggy has set a price band of Rs 371-390 for the IPO, with a lot size of 38 shares, allowing investors to bid for a minimum of 38 shares and in multiples thereof.

 

Meanwhile, Swiggy's grey market premium (GMP) has declined sharply today. According to sources tracking the grey market, Swiggy’s unlisted shares were trading at a premium of Rs 2, which translates to a GMP of 0.51 per cent relative to the upper price band of Rs 390, on Friday. This reflects a drop from the Rs 9.50 GMP recorded on November 6, when the IPO first opened.

 

With the subscription window closing today, the basis of allotment for Swiggy IPO shares is expected to be finalised by Monday, November 11, 2024. Upon successful allotment, shares are likely to be credited to investors' demat accounts by Tuesday, November 12, 2024. Swiggy shares are scheduled to debut on the BSE and NSE exchanges on Wednesday, November 13, 2024.

 

Link Intime India is the registrar for Swiggy’s IPO, while JP Morgan India, BofA Securities India, Jefferies India, Kotak Mahindra Capital Company, Citigroup Global Markets India, Avendus Capital, and ICICI Securities are the book-running lead managers.

 

Should you subscribe to the Swiggy IPO?  

Analysts from Mehta Equities, Deven Choksey Research, Swastika Investmart, SBI Securities, and Arihant Capital have shared their insights on the IPO for potential investors. READ MORE

 

 

  About Swiggy  

Founded in 2014, Swiggy offers users an online platform, accessible via a single app, to search, select, order, and pay for food (Food Delivery), groceries, and household goods (Instamart), with deliveries fulfilled through an on-demand network of delivery partners. As India’s leading food delivery platform, Swiggy has built a strong network of local restaurants, stores, and suppliers. Leveraging advanced technology and logistics expertise, Swiggy leads the online food delivery space and is backed by top-tier investors like SoftBank, Prosus, and Accel Partners.