Swiggy IPO subscribed 35% by day two; GMP signals modest listing gain

The food delivery and quick-commerce giant received bids for 5.56 crore shares out of the 16 crore available, as per NSE data.

The retail individual investor (RII) portion reached 84 percent subscription, while non-institutional investors subscribed to 14 percent of their allotted quota.

Qualified institutional buyers bid on 28 percent of their reserved shares, and the employees' portion was oversubscribed by 1.15 times.

The Bengaluru-based company previously raised Rs 5,085 crore from anchor investors.

In the grey market, Swiggy's shares are showing modest demand ahead of their anticipated November 13 listing, with a grey market premium (GMP) of Rs 6-15, suggesting a listing gain of around 1-3 percent, according to trackers IPO Watch and Investor Gain.

Swiggy’s shares are available to the public within a price range of Rs 371 to Rs 390 until November 8.

Through this IPO, Swiggy aims to raise Rs 11,327 crore, which includes a fresh issuance of Rs 4,499 crore and an offer for sale (OFS) of Rs 6,828 crore.

At the upper price band, Swiggy is estimated to have a valuation of approximately Rs 95,000 crore. In comparison, competitor Zomato, which went public in July 2021, currently holds a market valuation of Rs 2.25 lakh crore.

According to the draft prospectus, proceeds from the fresh issue will be allocated to technology and cloud infrastructure investments, brand marketing and business promotion, debt repayment, inorganic growth opportunities, and general corporate purposes.