Swiggy IPO Day 3: Issue Subscribed 3.48 times, QIB portion booked 5.84 times.
Swiggy, one of the largest food delivery platforms in India, saw its initial public offer (IPO) subscribed 0.96 times on the final day. After receiving a lukewarm response from investors on the first and second days, demand for the issue picked up, with retail and institutional investor segments seeing a significant rise in bids.
The IPO consists of a fresh issue of equity shares totalling ₹4,499 crore and an offer-for-sale (OFS) component aggregating to ₹6,828.43 crore. The ₹11,327.43 crore IPO opened for subscription on November 6. The subscription for the issue will close on November 8. Following this, shares will be allotted to investors on November 11. Swiggy’s shares will tentatively be listed on the stock exchanges on November 13.
Swiggy IPO Day 3: Subscription Status
Swiggy’s IPO was off to a slow start, with the issue being subscribed only 12% on the first day. However, demand for the IPO picked up with the subscription rate climbing to 35% on the second day.
As of 3:30 p.m. on November 8, the issue had been booked 3.48 times. The company received bids for 55.73 crore shares against the 16.01 crore shares on offer.
The company has set aside 8.69 crore shares for qualified institutional buyers (QIBs). The portion was subscribed 5.84 times with bids for 50.74 crore shares. Foreign institutional investors (FIIs) showed significant interest as they bid for the majority of the shares at 28.47 crore.
As per the issue, 4.34 crore shares were reserved for the non-institutional investor (NII) segment and received bids for 1.72 crore shares, or 0.40 times.
The portion set aside for retail investors was subscribed 1.09 times. The company received bids for 3.14 crore shares against 2.89 crore shares on offer. The portion reserved for Swiggy’s employees was booked 1.6 times, receiving bids for 11.97 lakh shares against 7.5 lakh shares on offer.
Swiggy had announced earlier that it has raised ₹5,085.02 crore from anchor investors. The IPO bid date for anchor investors was November 4. It saw participation from several anchor investors, such as New World Fund, Government Pension Fund Global, Nomura Funds Ireland, Fidelity Funds, BlackRock, Allianz Global Investors Fund, and Schroder International.
Swiggy IPO Price Band and Lot Size
Swiggy’s IPO has a lot size of 38 shares with a price band of ₹371 to ₹390 per share. To apply to the Swiggy IPO, an investor has to make a minimum investment of ₹14,820. For small non-institutional investors and big non-institutional investors, the minimum lot sizes have been set at 14 lots and 68 lots, respectively.
About Swiggy IPO
Swiggy’s ₹11,327 crore IPO is a combination of an OFS and an issue of fresh shares. The company intends to utilise the proceeds from the IPO to make prepayments towards borrowings of its material subsidiary, Scootsy. Additionally, the company will also use the funds to expand its network of dark stores and enhance its cloud and technology infrastructure.
Swiggy launched its food delivery business in 2014 and expanded into various services, including quick commerce and parcel delivery. The company is one of the largest in the food and grocery delivery space and has a pan-India presence.
For the quarter ended June 30, 2024, the company reported a net loss of ₹611 crore, higher than the net loss of ₹564 crore in the corresponding period last year.