The highly anticipated Swiggy IPO is set to make its market debut today, November 13, 2024, at 10:00 AM IST on both the NSE and BSE. With a subscription rate of 3.59 times, investor interest has been notable, but market analysts predict a cautious reception.
IPO Details and Subscription Overview
Swiggy’s initial public offering aimed to raise approximately ₹11,327 crore, consisting of a fresh issue of shares worth ₹4,499 crore and an offer for sale (OFS) of up to 17.51 crore shares, valued at around ₹6,828 crore. The IPO was open for subscription from November 6 to November 8, and the allotment was finalized on November 11.
Subscription Breakdown
- Qualified Institutional Buyers (QIBs): Subscribed 6.02 times
- Retail Investors: Subscribed 1.14 times
- Non-Institutional Investors (NIIs): Subscribed only 0.41 times
The robust interest from QIBs played a crucial role in the overall oversubscription, which indicates confidence from institutional investors despite a tepid response from retail and NII segments.
Swiggy Listing Price and Share Price Expectations
Swiggy’s shares are expected to list around the upper end of its price band, which was set between ₹371 and ₹390 per share. Analysts have indicated that the shares may debut close to the issue price of ₹390, although current grey market premiums suggest a muted start.
Grey Market Premium (GMP)
As of today, the grey market premium for Swiggy shares stands at approximately ₹0, indicating that shares are trading at their issue price with no premium or discount. This reflects cautious sentiment among investors ahead of the listing.
Market Debut Expectations
As Swiggy prepares for its stock market debut, analysts are predicting a muted performance. The grey market premium has been fluctuating, with recent indications suggesting minimal investor enthusiasm.
Expert Opinions
- Akriti Mehrotra, Research Analyst at StoxBox, noted that while the subscription rate is promising, ongoing losses and competitive pressures in the food delivery sector may temper initial enthusiasm. She recommends holding Swiggy shares for medium- to long-term growth potential.
- Prashanth Tapse, Senior Vice President of Research at Mehta Equities, expressed concerns about the company’s negative cash flow and high competition. He anticipates a flat to negative listing within the range of ±5-10% of the issue price.
- Shivani Nyati, Head of Wealth at Swastika Investmart, highlighted the subdued GMP and ongoing losses as reasons for caution among investors. She advised that only those with a high-risk tolerance consider investing in Swiggy shares.
Important Dates
- IPO Subscription Period: November 6 – November 8, 2024
- Allotment Finalized: November 11, 2024
- Listing Date: November 13, 2024
- Trading Begins: 10:00 AM IST on November 13, 2024
Conclusion
As Swiggy prepares to enter the stock market today, all eyes will be on its listing performance amid mixed signals from the grey market and varying investor sentiment. The company’s ability to navigate competitive pressures and achieve profitability will be critical in determining its long-term success in the rapidly evolving online food delivery market.
Disclaimer: The views expressed in this article are those of individual analysts and do not constitute financial advice. Investors should conduct their own research or consult with certified financial advisors before making investment decisions.
