The continuous decline in Swiggy’s Grey Market Premium (GMP) price is raising concerns among investors. Swiggy’s GMP has dropped from 25 to 18 and could decrease further until the IPO is officially launched.
Swiggy IPO – The most popular online food delivery and quick commerce platform Swiggy, is set to open the IPO on November 6 and will be available for subscription until November 8. Initially, Swiggy’s IPO generated significant excitement, as the company raised funds in a pre-IPO placement round involving celebrities and high-net-worth individual family offices. However, since the IPO announcement, the grey market premium (GMP) has started to worry investors, as it continues to drop day by day.
Price Band for Swiggy IPO
Swiggy’s IPO price band is set between Rs 371 and Rs 390 per share, with each lot containing 38 shares, pricing a single lot at Rs 14,820. Share allotment is expected on November 11, and Swiggy plans to list on the BSE and NSE on November 13. Additionally, employees will receive a special discount of Rs 25 per share.
Swiggy IPO Size
The size of Swiggy’s IPO is Rs. 11327.43 crore. Swiggy will sell 17.51 crore shares under the offer for sale, while the business will issue 11.54 crore new shares through an IPO. At least 75% of the shares will be reserved by the company for eligible institutional purchasers. Retail investors will also have the opportunity to purchase up to 10% of the company’s shares. 15% of the shares will be reserved for investors who are not institutions.
Swiggy IPO: Analysts Weigh in on Growth Potential, Competitive Challenges, and Investor Interest
According to analysts, Swiggy’s IPO may attract investors due to the possibility of listing gains.
As it prepares for its IPO, Swiggy has enormous growth potential, but it will be difficult to compete with Zomato’s well-established market dominance.
“Swiggy must carefully use the money raised from its first public offering (IPO) to close the market share gap with Zomato. It will be crucial to extend its offerings into new markets and urban areas. In order to more effectively compete with Blinkit in fast commerce, Swiggy must also speed up Instamart. According to a research by Kotak Securities, this can be achieved by growing its network of dark stores, improving consumer involvement through technological integration and strategic alliances, extending its product range, and streamlining logistics for quicker delivery.
In terms of finances, Swiggy’s losses for FY24 decreased to Rs. 2,350.2 crore from Rs. 4,179.3 crore the year before, while operating revenue increased by a strong 36% to Rs.11,247.4 crore from Rs.8,264.6 crore. The company’s Q1 FY25 loss of Rs. 611 crore was marginally more than the Rs.564 crore it posted for the same period last year. On the other hand, quarterly revenue increased by 35% to Rs.3,222.2 crore. The IPO is reportedly off to a great start, with both domestic and international investors showing a great deal of interest in the anchor book.
With bids of $15 billion, the $600 million anchor book was oversubscribed 25 times. International investment firms Fidelity, Capital Group, and Norges Bank Investment Management are among the major investors competing for a share of the IPO.
