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 company intends to use the Net Proceeds for the following purposes:
1. Investment in its Material Subsidiary, Scootsy, for repaying or prepaying some or all of its borrowings.
2. Investment in Scootsy to expand the Quick Commerce segment by establishing Dark Stores and covering lease/license payments for these stores.
3. Enhancement of technology and cloud infrastructure.
4. Brand marketing and promotion to boost platform visibility across different segments.
5. Funding for potential acquisitions and general corporate purposes.
Investors can bid for a minimum of 38 shares, with subsequent bids in multiples of 38. The table below outlines the minimum and maximum investments for retail investors and High Net-worth Individuals (HNI), both in terms of shares and the corresponding amount.
Swiggy’s initial public offering (IPO) closed on Friday, November 8, 2024. The basis of allotment is expected to be finalised on Monday, November 11, 2024. For applicants who are not allotted shares, refunds will be initiated on Tuesday, November 12, 2024, while shares will be credited to the Demat accounts of successful applicants on the same day. Swiggy’s stock market debut is scheduled for Wednesday, November 13, 2024.
Swiggy’s integrated app structure offers a distinct advantage over Zomato’s multi-app model. With a unified platform, Swiggy delivers multiple services such as food delivery, restaurant reservations via Dineout, event bookings, and Swiggy Genie for courier needs, fostering faster innovation and improved customer engagement. While Zomato has a larger Monthly Transacting User (MTU) base, Swiggy enjoys a higher Gross Order Value (GOV) per user—a significant metric for potential profitability as highlighted by Motilal Oswal Financial Services Ltd.
Ahead of its IPO launch, Swiggy successfully secured Rs 5,085 crore from anchor investors, a crucial milestone that added momentum to the public offering. This funding from institutional anchors helped stabilize Swiggy’s offering and drew further attention to the IPO. The significant pre-IPO inflow not only provided confidence in Swiggy’s value proposition but also highlighted the faith that established investors have in the company’s long-term growth trajectory.
Swiggy’s Qualified Institutional Buyers (QIB) segment was notably oversubscribed, reaching 6.02 times the available shares. Retail individual investors (RIIs) followed with a subscription rate of 1.14 times, indicating a positive response from the general public. However, non-institutional investors showed relatively subdued interest, subscribing to just 41% of the shares in their designated category. The data underscores a strong endorsement from larger institutional entities in Swiggy’s market potential.
Swiggy’s IPO garnered varying levels of interest across different investor categories. Retail investors were particularly active, with a subscription rate of 0.77 times, while Qualified Institutional Buyers (QIBs) subscribed at 0.15 times. Employees subscribed at 1.06 times, demonstrating internal confidence in Swiggy’s prospects, and Non-Institutional Investors (NIIs) had a lower subscription rate of 0.11 times. This range of investor engagement points to broad interest but reveals limited enthusiasm among institutional buyers.
Swiggy’s Rs 11,327 crore initial public offering (IPO) saw significant market interest, closing with a total subscription rate of 3.59 times. The food delivery giant, which also ventured into quick commerce, received bids for 57,530,753 shares against the 16,010,970 shares on offer. This strong response highlights Swiggy’s position as a multifaceted platform, attractive to both retail and institutional investors alike. The latest GMP (grey market premium) for Swiggy’s IPO stands at a modest 1.3%.
Swiggy’s IPO received a total subscription rate of 0.25 times. Retail investors showed majority interest as it was subscribed 0.77 times, Qualified Institutional Buyers (QIBs) subscription rate were of 0.15 times, employees reserved shares were subscribed 1.06 times and Non-Institutional Investors (NIIs) subscribed at 0.11 times.
Swiggy’s style of integrating multiple services within a single app contrasts with Zomato’s multi-app model, thus helps Swiggy to innovate at a faster speed. Through its integrated platform, Swiggy gives its users a variety of services beyond food delivery, such as restaurant reservations via Dineout, event bookings through SteppinOut, pick-up and drop-off assistance with Swiggy Genie, and additional hyperlocal commerce options like Swiggy Minis.
On the other hand Zomato still maintains a higher average Monthly Transacting Users (MTU), Swiggy boasts a higher Gross Order Value (GOV) per user, according to Motilal Oswal Financial Services Ltd.
The company plan is to utilize the proceeds from the fresh issue and use them in investing in sectors like brand marketing, promotion of the firm, clearing all the debt and cloud infrastructure, as per draft papers submitted by the company.
Swiggy IPO final allotment: November 11, 2024
Share will get credited to Demat Account: November 12, 2024
Listing date on BSE and NSE: November 13, 2024.
According to Incred Equities report, the initial public offer or IPO price band of Rs 371-390 per equity share, having a face value of Re 1, implies a market capitalization range of Rs 832-873 bn. At the upper band, the total issue size (290 m shares) is estimated at Rs 113.2bn comprising a fresh issue of Rs 44.9bn and offer for sale of Rs 68.3bn from Prosus (MIH India Food Holdings B.V.; 109.1m, Rs 42.5bn), Accel {Accel India IV (Mauritius) Limited; 10.6m, Rs 4.1bn}, and 28 others (55.4m, Rs 21.6bn).
According to Motilal Oswal Financial Services Ltd, Swiggy’s food delivery business has turned EBITDA positive in Q1FY25 with adjusted EBITDA of Rs57.8cr. It has 1.4cr Avg Monthly Transacting Users (MTU) as of June’24 as compared to 1.27cr in FY24 with constant increase in Average Order Value (AOV) per order. Further, It has launched new initiatives with the 10-minute delivery model Bolt, which is receiving a good initial response.
ICICI Securities Ltd
JP Morgan India Pvt Ltd
JP Morgan India Pvt Ltd
Citigroup Global Markets India Pvt Ltd
Avendus Capital Pvt Ltd
BofA Securities India Ltd
According to latest data, Swiggy’s IPO includes a fresh issue of shares valued at Rs 4,499 crore and an offer for sale (OFS) worth Rs 6,828 crore.
Swiggy’s IPO share allotment is expected to be finalized on Monday, with shares distributed to investors through a lottery system managed by the appointed registrar. On the allotment day, investors will get to know the number of shares allocated to them, determined by the bids they placed during the IPO.
Here we will bring you all the real time updates on Swiggy IPO listing, allotment and subscription status. So, keep checking this space for the all the news development related to this.