Swiggy’s shares are set to debut on November 13, with expectations pointing to a lukewarm performance based on the latest trends in the grey market. The food delivery giant has witnessed a consistent drop in its grey market premium (GMP), now trading in the range of Re 1-2. This implies a marginal listing gain of approximately 0.2-0.5%, a notable decrease from the Rs 18 GMP on November 1, which suggested a potential 4.62% gain at the time.
Grey Market Sentiment and Market Conditions
The decline in GMP reflects broader market uncertainties, including concerns over Swiggy’s profitability trajectory, a slowdown in urban demand, and ongoing foreign investor outflows. These factors have tempered investor sentiment, indicating a cautious debut for Swiggy’s IPO.
Subscription Overview
Swiggy’s IPO opened for subscription on November 6 and closed on November 8, successfully garnering full subscription by the final day. The Rs 11,327.43 crore offering includes a fresh issue of Rs 4,500 crore and an Offer for Sale (OFS) worth Rs 6,800 crore. The price band for the IPO was set between Rs 371-390 per share.
Final Subscription Breakdown:
- Qualified Institutional Buyers (QIBs): The QIB category saw strong demand, with 52.31 crore shares bid against the 8.69 crore shares on offer, achieving a 6.02 times subscription.
- Non-Institutional Investors (NIIs): This segment was undersubscribed at 0.41 times, with 1.78 crore shares bid against the available 4.34 crore shares.
- Retail Individual Investors (RIIs): Retail investors showed moderate interest, with a 1.14 times oversubscription, totaling 3.30 crore shares against 2.89 crore shares.
- Employee Reserved Category: Swiggy’s employees demonstrated positive interest with a 1.65 times subscription, amounting to 12.36 lakh shares bid for 7.50 lakh shares reserved.
Overall, the IPO achieved an aggregate subscription rate of 3.59 times, with 57.52 crore bids received for 16.01 crore shares.
Market Outlook
Swiggy’s IPO represents a significant event for the food and grocery delivery sector, attracting substantial institutional interest while retail and employee participation remained steady. Despite the positive subscription numbers, the muted grey market premium signals cautious optimism. Swiggy’s listing will be closely watched to gauge investor confidence in the platform’s long-term profitability and growth strategy amidst market headwinds.
Allocation details will be finalized soon, with Swiggy expected to list on the stock exchanges in the coming days.
