Swiggy IPO makes lackluster start: subscription at 7% so far, GMP 3%

Swiggy IPO subscription status: The highly anticipated initial public offering (IPO) of Swiggy, which opened for subscription today, has received a lukewarm response from investors so far. As of 12:18 PM on Wednesday, NSE data revealed that the IPO had garnered bids for merely 1,10,51,578 shares out of 16,01,09,703 on offer, translating to a subscription rate of just 0.07 times.

 

Breaking down the numbers, Retail Individual Investors (RIIs) showed modest interest with a 0.33 times subscription, while Non-Institutional Investors (NIIs) lagged behind at 0.03 times. Notably, Qualified Institutional Buyers (QIBs) demonstrated minimal interest, bidding for a mere 532 shares against the 8,69,23,475 reserved for this category. In contrast, the quota reserved for employees saw a relatively better response, with a 0.48 times subscription. 

 

 

Meanwhile, the unlisted shares of Swiggy were trading at a premium of Rs 12 against the upper end of the IPO price of Rs 390, reflecting a grey market premium (GMP) of 3.08 per cent, as per the sources tracking grey market activities. IPO GMP generally reflects investor sentiment and demand, with a higher GMP indicating strong demand and potential for listing gains. That said, GMP is an unofficial and unregulated market indicator, subject to factors such as market conditions, company fundamentals, and investor enthusiasm.

 

At the upper end of the price band, the company seeks to raise Rs 11,327.43 crore by offering a fresh issue of 115,358,974 shares, and an offer for sale of 175,087,863 shares with a face value of Rs 1 apiece. The company has set the IPO price band at Rs 371 - Rs 390, with a lot size of 38 shares. Investors can bid for a minimum of 38 shares and in multiples thereof.

 

About Swiggy

Swiggy, founded in 2014 and based in Bengaluru, is a new-age, consumer-first technology company offering users an easy-to-use platform through a single app where one can browse, choose, order, and pay for food (Food Delivery), groceries, and household items (Instamart). Swiggy works mainly as a business-to-consumer (B2C) marketplace. It brings together restaurants and merchants who list their food and products, allowing users to find and buy these items. Swiggy helps make sure the orders are delivered, and it also supports delivery, reservations, payments, and generates leads for its partners.