Swiggy IPO Day 2: 24% subscription, GMP up 2%; should you subscribe?

Swiggy IPO has been subscribed 0.73 times in the retail investor quota, 0.17 times by NIIs, and 0.14 times by QIBs

Swiggy IPO subscription status: Swiggy has seen a muted response from investors so far for its Rs 11,327.43 crore initial public offering, which opened for subscription on November 6, 2024. By around 12:20 PM on Thursday, the issue had received a 24 per cent subscription, according to data available on the National Stock Exchange (NSE).

 

Swiggy IPO has been subscribed 0.73 times in the retail investor quota, 0.17 times by Non-Institutional Investors (NIIs), and 0.14 times by Qualified Institutional Buyers (QIBs). Meanwhile, the quota reserved for employees has seen fully subscribed.

 

That said, Swiggy’s unlisted shares continue to trade at a premium in the grey market. Sources tracking grey market activity revealed that Swiggy's unlisted shares were commanding a premium of Rs 9.50, translating to a grey market premium (GMP) of 2.44 per cent against the upper end of the price band of Rs 390.

 

The Swiggy IPO, available for public subscription until tomorrow, November 8, consists of a fresh issue of 115,358,974 shares and an offer for sale of 175,087,863 shares, with a face value of Re 1 per share. The public issue is available at a price band of Rs 371-390, with a lot size of 38 shares. Investors can bid for a minimum of 38 shares and in multiples thereof.

 

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 list on the exchanges BSE and NSE on Wednesday, November 13, 2024.

 

Link Intime India is the registrar for the public issue, 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 reviewed the public offering and provided their outlook for investors. READ MORE

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Swiggy, a leading food delivery platform, has forged strategic partnerships with local restaurants, stores, and suppliers to offer customers an extensive range of food, groceries, and household essentials. Leveraging its cutting-edge technology and robust delivery network, Swiggy ensures seamless ordering, payment, and delivery experiences. With the backing of renowned investors SoftBank, Prosus, and Accel Partners, the company has established itself as a pioneer in the food delivery space, connecting customers with local restaurants and stores.