With Swiggy’s IPO allotment finalized today, investors are preparing for the company’s listing on November 13, set against a backdrop of mixed market sentiment.
While the IPO saw strong interest with a 3.59 times subscription rate, Swiggy’s grey market premium (GMP) remains low, signaling cautious market expectations for the debut.
Swiggy IPO Subscription and Price Band
Running from November 6 to November 8, Swiggy’s IPO generated significant interest, receiving bids for 57.53 crore shares compared to the 16.01 crore shares on offer, translating to a 3.59 times subscription rate.
The IPO price was set between Rs 371 and Rs 390 per share, aiming to establish Swiggy competitively within the food delivery sector.
Check IPO Allotment Status
Investors can check their IPO allotment status online once the allotment is finalized.
Through BSE
- Go to BSE’s allotment status page.
- Select “Equity” under the Issue Type and choose “Swiggy Ltd” under the Issue Name.
- Enter your application number or PAN and click “Search” to view your status.
Check on Link Intime
- You can also visit Link Intime’s IPO portal to verify your allotment status.
Following allotment, banks will confirm debits for the allotted shares, marking the completion of the process.
GMP and Listing Expectations
Swiggy’s GMP is currently at Rs 1 above the issue price, a modest premium that suggests market caution. This represents a 0.26% premium, down from a peak of Rs 25 in recent weeks.
Analysts attribute this to recent market volatility, particularly in benchmark indices, potentially leading to a tempered listing.
Gaurav Garg, a research analyst at Lemonn Markets Desk, noted that Swiggy’s CFO took market volatility into account in the IPO pricing strategy, hinting that Swiggy’s listing may see only minor premiums if current GMP levels persist.
Key Financial Structure and Investor Backing
Swiggy’s IPO features both fresh issues and an Offer for Sale (OFS) component, aiming to raise Rs 4,500 crore through new equity and Rs 6,800 crore via OFS.
The offering includes prominent investors such as Accel, Apoletto Asia, and Alpha Wave Ventures, with early stakeholders like Accel realizing significant returns.
Notably, major investor SoftBank has opted to retain its stake, signaling confidence in Swiggy’s growth trajectory.
Allocation of Funds
Swiggy has outlined a comprehensive plan for its IPO proceeds. Approximately Rs 137.41 crore will address Scootsy’s debt, while Rs 982.40 crore will fund Scootsy’s expansion in dark store networks, enhancing Swiggy’s quick commerce infrastructure.
An additional Rs 586.20 crore will support technology upgrades, with Rs 929.50 crore allocated for brand promotion. Swiggy also plans to pursue acquisitions aligned with its food delivery and quick commerce offerings.
Leadership Appointments
Ahead of its IPO, Swiggy made key leadership hires, underscoring its focus on operational excellence and customer growth.
Shalabh Shrivastava and Hari Kumar G recently joined Swiggy’s executive team, bringing experience from companies like Flipkart and ICICI Bank.
Shrivastava, as SVP of Driver Operations, will oversee delivery fleet operations, while Kumar, SVP and CBO of Swiggy Instamart, will drive growth in the online grocery sector.
According to Girish Menon, Swiggy’s Chief HR Officer, these appointments are strategically aligned with the company’s goal of scaling operations and solidifying its position across food delivery and quick commerce.
Competitive Landscape
Swiggy’s IPO marks a pivotal development in India’s food delivery sector, where it competes primarily with Zomato.
With Zomato being the only listed player so far, Swiggy’s public entry may recalibrate valuations in the industry and influence investment trends in related startups.
Background and Growth Journey
Founded in 2014, Swiggy has become a major player in India’s food delivery market, with a valuation around $13 billion as of April.
Swiggy reported annual revenue of USD 1.09 billion for the fiscal year ending March 31, 2023, supported by over 4,700 employees. The IPO marks a significant milestone following SEBI’s approval of Swiggy’s confidential draft in September.
What’s Next for Investors?
With the allotment finalization complete, investors will soon gain insights into their holdings in one of India’s most high-profile listings of 2024. Swiggy’s growth strategy, especially its investment in quick commerce infrastructure, could drive long-term gains.
Market experts note that the IPO’s upcoming listing on November 13 will likely be closely observed as it could affect sector-wide valuations.
Disclaimer – The information provided here is for educational purposes only and should not be construed as financial or investment advice. MarketScope Daily is not SEBI-registered, and the views expressed reflect individual perspectives and analyses. Readers should conduct independent research or consult a financial advisor before making any investment decisions. MarketScope Daily is not responsible for any outcomes related to investments made based on this content.
