Swiggy‘s INR 11,324 crore IPO saw a slow response on the second day persistently, with only 35% of the shares being subscribed. Bombay Stock Exchange (BSE) data shows that investors bid for 5.57 crore shares out of the 16.01 crore shares available.
Retail investors subscribes 84%, employee portion at 1.15x
By the end of Day 1, retail investors had subscribed to 84% of their allotted shares. The employee portion was oversubscribed at 1.15 times. Non-institutional investors bid for 59.14 lakh shares out of the 4.34 crore shares available, resulting in a 14% subscription.
Continue Exploring: Swiggy’s IPO receives 11% subscription on opening day, sluggish start
According to INC42, in the meantime, InCred Equities gave the Swiggy IPO a ‘Subscribe’ rating. They said, “We recommend subscribing to the IPO as favourable scale and long-term opportunities in quick commerce provide growth runaway while the food delivery vertical has the potential to improve the margin and cash flow going ahead.”
Earlier on day 1st, Swiggy had a weak start on Wednesday, November 6, with only 12% of shares subscribed. On November 5, Swiggy raised INR 5,085 crore from anchor investors.
Swiggy’s price per shares lies between INR 371 to INR 390
Notably, the food delivery platform has set a price range of INR 371 to INR 390 per share for its public offering. At the high end, the company plans to raise INR 11,324 crore. The fresh issue part of the IPO has been increased to INR 4,999 crore, while the offer for sale (OFS) part has been slightly reduced to 17.5 crore shares.
Continue Exploring: Swiggy secures INR 5,085 Cr before IPO, issues 13.03 Cr shares
Meanwhile, Swiggy’s initial public offering (IPO) is set to launch on November 13 on the BSE & NSE, aiming for an $11.3 billion valuation. Early investors Accel India and Elevation Capital are expected to earn impressive returns, more than 34 times their initial investment, by selling some of their shares.
Furthermore, the food tech giant’s financial performance for the first quarter of FY2024-25 showed mixed results. The company’s operating revenue grew 35% year-on-year to ₹3,222.2 crore, indicating strong growth. However, its consolidated net loss also increased by 8% to ₹611 crore during the same period.
