Swiggy IPO allotment Status Highlights: Swiggy’s Rs 11,327 crore initial offering (IPO) concluded on Friday. It has been subscribed to a total of 3.59 times. The current GMP is at 0.26%. The registrar will be finalising the share allotment today, November 11.
According to NSE’s latest data, the IPO for food delivery and quick commerce leader attained a total bid for 57,53,07,536 shares in comparison to 16,01,09,703 shares on offer.
The qualified institutional buyers (QIBs) segment was reported to be heavily oversubscribed at 6.02 times. In contrast, the portion for non-institutional investors received 41% of its available shares whereas retail individual investors (RIIs) subscribed to the issue 1.14 times.
Swiggy has also announced that it has managed to raise Rs 5,085 crore from anchor investors just ahead of the IPO.
The allotment status of the Swiggy IPO is expected to be available on November 11, 2024. Currently, the status is not available as the basis of allotment has not been finalized yet.
The latest Grey Market Premium (GMP) for the Swiggy IPO stands at Rs 1, last updated on November 11, 2024, at 6:32 PM. With a price band of Rs 390, the estimated listing price is Rs 391 (cap price plus today's GMP), translating to an expected per-share gain of 0.26%.
Swiggy IPO Allotment Live News: Subscription Details Day 1
On Day 1, November 6, 2024, the QIB (Qualified Institutional Buyer) segment saw no subscriptions, while the NII (Non-Institutional Investors) subscribed to 0.06 times, retail investors subscribed to 0.56 times, and employees (EMP) subscribed to 0.12 times.
The Swiggy IPO offers investors the option to bid for a minimum of 38 shares, with additional shares available in multiples of 38. For retail investors, the minimum investment is for 38 shares (Rs 14,820), and the maximum is for 494 shares (Rs 192,660). Small High Net-Worth Individuals (S-HNIs) can bid for a minimum of 532 shares (Rs 207,480) and up to 2,546 shares (Rs 992,940), while Big High Net-Worth Individuals (B-HNIs) must invest in a minimum of 2,584 shares (Rs 1,007,760). This tiered structure offers flexibility based on the investor’s category and desired exposure to the IPO.
The book-running lead managers for the Swiggy IPO are Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited, Jefferies India Private Limited, Avendus Capital Pvt Ltd, J.P. Morgan India Private Limited, Bofa Securities India Limited, and ICICI Securities Limited. Link Intime India Private Ltd serves as the registrar for the issue.
"Swiggy operates in a oligopoly market which is at a nascent stage, thus providing enough opportunities for players to create their niche. Swiggy’s innovation DNA is key to success and it could again be at the forefront through its new 10-minute food delivery offering. However, given that the company is still loss making at an aggregate level, and overall profitability may be some time away, we recommend only High Risk investors to ‘Subscribe for long term’. At the upper price band of ₹390, the issue is priced at 7.8x FY24 Market Cap to Sales and looks reasonably priced compared to Zomato which is trading at 17.5x."
"At the upper price band of ₹390, Swiggy is available at Mcap/sales of 7.8x (on FY24 financials), which appears to be fairly priced. We assign a “Subscribe” rating for the issue on a long-term investment basis, considering its strong brand recall, diversified offerings, integrated app, rapid scaling, consistent innovation, expansion of dark stores, and promising industry outlook."
A total 130,385,211 were offered to Anchor investors for bidding startng from November 5, 2024. The share were amounting to a total of Rs 5,085.02 cores. The Anchor lock-in period end date for 50% shares (30 Days) is December 11, 2024. The Anchor lock in end date for remaining share is 90 days on February 9, 2025.
The Swiggy IPO was opened on Novemeber 6, 2024 and was closed on 8 November 2024. The allotment of share for Swiggy IPO took place on 8 November 2024. The date for the intitation of refunds is 12 Novemeber 2024. Similarly, shares alloted will be credited on 12 November 2024 to the demat account. The company will list on 13 November 2024.
The Swiggy IPO public issue allotment had total 290,494,914 shares offered to the investors. The Anchor investors category bid for 130,385,211 shares. The Qualified Institutional Buyers category were allocated 86,923,475 shares for bidding. The Non-Instituional Investors and Retail Investors were allocated 43,461,737 and 28,974,491 respectively. Employess were allocated 750,000 shares in the public issue.
The Swiggy IPO saw a subscription of 3.59 times. The Qualified institutions investor category saw a 6.02 times of good subscription. The Retail investors category saw 1.14 times subscription. The share allocated to employees were subscribed 1.65 times and Non-Institutional saw a 0.41 times of subscription.
Swiggy IPO Allotment Live Updates: Employees reservation
Swiggy IPO included a reservation of up to 750,000 shares for employees, which were offered at a discount of Rs 25 to the issue price. The employees booked the issue 1.65 times, bidding for 12,37,546 shares, amounting to Rs 48.26 crore.
Swiggy IPO Allotment Live Updates: Motilal Oswal on Swiggy IPO
"Swiggy operates in a oligopoly market which is at a nascent stage, thus providing enough opportunities for players to create their niche. Swiggy’s innovation DNA is key to success and it could again be at the forefront through its new 10-minute food delivery offering. However, given that the company is still loss making at an aggregate level, and overall profitability may be some time away, we recommend only High Risk investors to ‘Subscribe for long term’. At the upper price band of Rs 390, the issue is priced at 7.8x FY24 market capitalisation to sales and looks reasonably priced compared to Zomato which is trading at 17.5x," said Motilal Oswal Financial Services in an IPO note.
Swiggy IPO Allotment Live Updates: GMP falls significantly
It is to be noted that, on October 29, the GMP stood at 6.4% (Rs 25 ), but it has since dropped significantly to 0.26%. This decline can be attributed to the recent correction in benchmark indices and the prevailing negative market sentiment. However, Swiggy’s CFO has noted that the October volatility was factored into their pricing strategy.
Swiggy IPO Allotment Live Updates: Lemonn on Swiggy IPO
"As of day 3, the retail response to the IPO has been muted, likely due to the ongoing market correction and a preference for high-GMP IPOs among investors seeking immediate gains. In contrast, the employee quota has seen relatively stronger subscription, driven by a Rs 25 discount, equating to a 6.4% benefit at the upper price band. The current subscription status suggests that applicants in the HNI category are likely to secure allotments with certainty," said Gaurav Garg, Research Analyst at Lemonn.
Swiggy IPO Allotment Live Updates: Swiggy has strong brand recall
"The company is the most valuable brand in the Consumer Technology & Services Platforms category and is among the Top 25 most valuable brands in India overall (Source: Kantar BrandZ Most Valuable Indian Brands Report 2024). Swiggy is the only unified app in India that fulfils all food-related missions of urban users (ordering in, eating-out and cooking-at-home) through its own platform," said SBI Capital Securities in an IPO note.
Swiggy IPO Allotment Live Updates: Swiggy business model
The company earns revenue from commissions from restaurant & merchant partners, advertising revenue, fees from customers & delivery partner & subscription revenue from Swiggy One. The food delivery business is the most scaled with presence across 681
cities in India.
"At the higher price band, Swiggy is demanding an EV/Sales multiple of 7.3x, which is at a discount to its only listed peer i.e. Zomato. Despite reporting robust growth during the reported period, currently its operations are loss-making at EBIT level. Despite the company management guiding profitable operations in future, we are cautiously optimistic about the future performance. Thus, considering the future growth potential in the quick-commerce and supply-chain distribution market and the duopoly market structure, we are assigning a "Subscribe for Long Term" rating for the issue," said Choice Broking in a research report.
Swiggy IPO Live Updates: Swiggy IPO details
Swiggy launched the IPO on November 06 to raise a sum of Rs 11,327.43 crore. The issue is a combination of both fresh shares and offer for sale. The company will sell 11.54 crore fresh shares for Rs 4,499 crore. The offer for sale is of 17.51 crore shares for Rs 6,828.43 crore.
Swiggy IPO Live Updates: Allotment and listing
Swiggy IPO allotment is all set to finalise today, November 11. The IPO was opened to investors on November 06 and November 08. The listing is likely on November 13.
Swiggy IPO Live Updates: BRLMs of Swiggy IPO
Kotak Mahindra Capital Company, Citigroup Global Markets India, Jefferies India, Avendus Capital, J.P. Morgan India, BofA Securities India, and ICICI Securities acted as the lead book runners of the issue.
Swiggy IPO Live Updates: Anchor investment
The company raised a sum of Rs 5,085.02 crore from anchor investors by offering them 130.38 million shares. The anchor lock-in period for 50% shares ends on December 11, 2024, while for the remaining shares end on February 09, 2025.
Swiggy IPO Live Updates: Key risks
"Although Swiggy is seen as a top brand in its field, there are serious concerns about its all-in-one app. The pressure to keep all its food-related services high-quality could hurt its reputation for convenience and quality. While it may have a big share of consumer spending, this doesn't guarantee that users are happy, especially with growing competition. Relying on a single app to keep users engaged and loyal is risky, as customers might look for other options if their needs aren't met," said Arihant Capital Services in an IPO note.
Swiggy IPO Live Updates: GMP falls to 0.26%
Swiggy's grey market premium fell to 0.26% from 6.4% on October 29. This indicates a muted listing on the bourses. The grey market is an unofficial place where shares trade illegally ahead of listing.
Swiggy Limited's financial information for the period ending March 31, 2024, shows a notable growth in its performance. The company’s revenue saw a significant increase of 34%, reaching Rs 11,634.35 crore for the fiscal year ending March 31, 2024, compared to Rs 8,714.45 crore for the same period in 2023. The profit after tax (PAT) also rose by 44%, from a loss of Rs 4,179.31 crore in 2023 to a smaller loss of Rs 2,350.24 crore in 2024.
As of June 30, 2024, Swiggy’s total assets stood at Rs 10,341.24 crore, a slight decrease from Rs 11,280.65 crore on March 31, 2024. The company’s net worth decreased to Rs 7,444.99 crore from Rs 9,056.61 crore a year earlier. Additionally, Swiggy’s reserves and surplus remained negative, amounting to Rs -7,750.85 crore as of June 30, 2024, compared to Rs -6,510.34 crore in 2023.
The company’s total borrowing increased slightly, with outstanding loans totaling Rs 256.61 crore as of June 30, 2024.
Below is the live update of the IPO bidding details from BSE and NSE: