Swiggy IPO is scheduled to open on Wednesday, November 6, and close on Friday, November 8. The details on allocation to anchor investors for Swiggy IPO will be out Tuesday, November 5. Swiggy IPO price band has been fixed in the range of ₹371 to 390 per equity share of face value of ₹1.
Swiggy offers its users a user-friendly platform accessible through one app to explore, choose, order, and pay for food (Food Delivery), groceries and household items (Instamart), and have their orders delivered to their homes through a network of on-demand delivery partners.
Bloomberg's report pointed out that Swiggy's IPO might echo past experiences. The media coverage mentioned that the history of significant initial public offerings in India is rather disheartening. Offerings that have secured more than $1 billion typically fail to provide a substantial increase on their first day of trading. Swiggy’s $1.3 billion offering appears to be on track to follow that pattern, as the grey market price is just 6% above ₹390, the maximum limit of the IPO’s price range.
Furthermore, Zomato’s shares have declined by 17% over the past month, and the poor performance of Hyundai Motor India IPO could cause retail investors to reconsider their stance, the report said.
Let's check what does Swiggy IPO GMP today signal ahead of opening for subscription;
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 trends observed over the past nine sessions, today's IPO GMP is showing an upward movement, indicating a robust listing. The minimum GMP recorded is ₹0, while the maximum stands at ₹25, according to experts from investorgain.com.
'Grey market premium' indicates investors' readiness to pay more than the issue price.
Swiggy's IPO includes a new offering worth ₹4,499 crore, along with an offer-for-sale (OFS) of 175,087,863 equity shares from the company's selling shareholders.
In the OFS, the shareholders selling their stakes include Accel India IV (Mauritius) Ltd, Apoletto Asia Ltd, Alpha Wave Ventures, LP, Coatue PE Asia XI LLC, DST EuroAsia V B.V, Elevation Capital V Ltd, Inspired Elite Investments Ltd, MIH India Food Holdings B.V, Norwest Venture Partners VIIA-Mauritius, and Tencent Cloud Europe B.V.
The firm intends to use the net proceeds to invest in its primary subsidiary, Scootsy, fulfill its debt obligations, expand its network of dark stores in the quick commerce industry, and pay for lease or licensing fees associated with those dark stores.
Additionally, it plans to invest in technology and cloud-based systems. The organization also stated that it will dedicate resources for brand marketing and associated promotional costs. Furthermore, it aims to reserve funds to facilitate growth through future acquisitions that have yet to be detailed, along with resources for overall corporate requirements.
Kotak Mahindra Capital Company Ltd, Citigroup Global Markets India Private Ltd, Jefferies India Private Ltd, Avendus Capital Pvt Ltd, J.P. Morgan India Private Ltd, Bofa Securities India Ltd, and ICICI Securities Ltd are the lead managers overseeing the Swiggy IPO, whereas Link Intime India Private Ltd serves as the registrar for the offering.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
