Swiggy IPO Set to Open on Wednesday: GMP, Price, and Lot Size Details

The Swiggy IPO will open for public subscription from November 6 to November 8. Allotment of shares will be finalized on November 11, and the listing will occur on both the BSE and NSE on November 13.

Swiggy IPO: Food and grocery delivery giant Swiggy is set to launch its initial public offering (IPO) on November 6, 2024, with the offering closing on November 8. The IPO aims to raise ₹11,300 crore, and the price band has been set between ₹371 and ₹390 per share. However, market observers note that current grey market activity indicates a lackluster interest in the IPO, as Swiggy’s unlisted shares are trading at only a 5.64 percent premium.

Swiggy IPO:

Price Band and Lot Size The price band of the IPO has been fixed in the range of Rs 371 to Rs 390 apiece. The lot size for the Swiggy IPO has been set at 38 shares. Retail investors must apply for at least one lot, which consists of 38 shares, or in multiples of 38 shares.

For small non-institutional investors (NIIs), the minimum investment is 14 lots (532 shares), totaling ₹2,07,480. For large non-institutional investors, the minimum is 68 lots (2,584 shares), amounting to ₹10,07,760.

Swiggy IPO GMP Today

Market observers report that Swiggy Ltd’s unlisted shares are currently trading at just ₹22 above the issue price in the grey market. This ₹22 grey market premium (GMP) suggests that investors anticipate a 5.64 percent gain upon listing.

The GMP fluctuates based on market sentiment and can change frequently. It reflects investors’ willingness to pay a premium over the issue price.

Swiggy IPO: Key Details and Investor Interest

In a remarkable show of confidence, major investors, including Norway’s sovereign wealth fund Norges and Fidelity, have placed bids exceeding $15 billion for Swiggy’s IPO—25 times the $605 million allocated for large investors, according to Reuters. Swiggy, one of the most valued new-age consumer brands in India, is set to make a significant impact in the capital market with its ₹11,300-crore IPO, which includes a fresh issue of shares worth ₹4,500 crore and an offer for sale (OFS) of ₹6,800 crore.

The OFS will see shares sold by prominent early investors such as Accel India IV (Mauritius) Ltd, Apoletto Asia Ltd, Alpha Wave Ventures, LP, Coatue PE Asia XI LLC, DST EuroAsia V B.V., Elevation Capital V Ltd, Inspired Elite Investments Ltd, MIH India Food Holdings B.V., Norwest Venture Partners VII-A Mauritius, and Tencent Cloud Europe B.V. Notably, early backers like Accel, Elevation Capital, and Norwest Ventures are reaping returns of up to 35 times on the shares they are selling, while SoftBank has chosen to remain invested.

According to the IPO documents, a portion of the proceeds from the fresh issue, totaling ₹137.41 crore, will be allocated to pay off debt for its subsidiary Scootsy. Additionally, ₹982.40 crore is earmarked for expanding the Dark Store network within the quick commerce segment, with ₹559.10 crore set for establishing dark stores and ₹423.30 crore for lease or license payments.

The company plans to invest ₹586.20 crore in technology and cloud infrastructure, while ₹929.50 crore will go towards brand marketing and business promotion. Funds will also be allocated for inorganic growth and general corporate purposes.

Founded in 2014, Swiggy achieved a valuation of nearly $13 billion as of April 2024. The company reported an annual revenue of $1.09 billion as of March 31, 2023, and employs over 4,700 people, according to Tracxn, a global startup data platform.

Swiggy’s confidential offer document received approval from the Securities and Exchange Board of India (Sebi) in September, paving the way for updated draft papers to be filed. The company had initially submitted its offer document on April 30 through a confidential pre-filing process. This process allows Sebi to review the confidential Draft Red Herring Prospectus (DRHP) and provide feedback. Following this, the company is required to submit an updated document for public comment over a period of 21 days.

Swiggy IPO: Grey Market Trading Shows Premium Ahead of Launch

The unlisted shares of food delivery giant Swiggy are currently trading at a premium in the grey market as the company gears up for its initial public offering (IPO), set to open on Wednesday, November 6, 2024.

Sources in the grey market report that Swiggy’s shares, associated with an IPO size of ₹X crore, are trading at a ₹25 premium. This represents a 6.41 percent gain over the upper price band of ₹390. However, it’s worth noting that the grey market premium (GMP) has significantly decreased from the ₹130 recorded on October 28, 2024.

Understanding Grey Market Premiums

Grey market premiums (GMP) often serve as a barometer of market sentiment and investor demand for an IPO. The GMP reflects the price investors are willing to pay above the issue price, influenced by various factors, including the company’s financial performance, industry trends, IPO pricing, investor sentiment, and global economic conditions.

A positive GMP generally indicates strong demand and the potential for a higher listing price, while a negative GMP may suggest weaker demand and the possibility of a lower listing price. As Swiggy approaches its IPO launch, market watchers will be closely monitoring these trends to gauge investor interest. Read More Www.WorldLast24hr.com