The prominent food delivery and quick commerce platform, Swiggy, has been making news with its initial public offering (IPO) that started subscription on November 6, 2024. The fresh equity and offer for sale by existing shareholders would amount to a whopping Rs 11,327.43 crore, according to the company. The move follows Mukesh Ambani’s entry into the quick commerce sector, adding to the fierceness of the industry.
Swiggy's successful sale of Rs 5,085 crore to anchor investors even before the public subscription started was a big boost for its IPO prospects. This is evident from the fact that Swiggy has noted investors such as New World Fund Inc., Government Pension Fund Global, and BlackRock, which shows strong institutional confidence in Swiggy’s growth potential. This was a robust demand by both domestic and international investors, as the company allotted 13.04 crore shares to 151 funds at Rs 390 a share.
The IPO is priced in a range of Rs 371 to Rs 390 per share with a minimum lot size of 38 shares. Retail investors led at around 32 percent as of midday on the first day of the IPO, which had attracted subscriptions of about 7 percent. Swiggy shares are trading in the grey market premium (GMP) of Rs 11, which means there is positive sentiment amongst investors and a listing gain might be on the cards.
The allotment date for this IPO is set for November 11, and the listing date is November 13 on both BSE and NSE. Major financial institutions such as Kotak Mahindra Capital and Citigroup Global Markets India are the lead managers for this offering.
With Swiggy's IPO, not only is it a massive fundraising effort, but it also gives investors a chance to get involved with a leading player in the fast-growing food delivery and quick commerce space in India.
