[Update] Swiggy IPO: Issue Subscribed 35% On Day 2

Update | November 7, 5:50 PM 

Foodtech major Swiggy’s INR 11,324 Cr IPO continued to receive lukewarm response on the second day of the bidding, with the public issue getting subscribed 35% at the end of the day.

According to BSE data, investors bid for 5.57 Cr shares as against 16.01 Cr shares on offer.

The retail investor quota was subscribed 84% at the end of Day 1, while the employee portion was oversubscribed 1.15 times. Non-institutional investors placed bids for 59.14 Lakh shares against the 4.34 Cr shares allocated, translating to a 14% subscription. 

Qualified institutional buyers bid for 2.47 Cr shares, compared to the 8.69 Cr shares on offer. 

Meanwhile, InCred Equities gave a ‘Subscribe’ rating to the Swiggy IPO. “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,” it said in a note.

It added that internal controls, as reflected in the auditor’s qualified opinion, and increased competitive intensity are the key downside risks.

Original | November 7, 1:55 PM

Swiggy’s IPO continued its muted subscription on the second day today, following a dull start on the first day. 

On the second day (November 7) of bidding, the foodtech giant’s IPO received bids for 3.9 Cr shares against the 16.01 Cr shares on offer, as of 1:30 PM.

Employees led the way, with the reserved portion for them oversubscribed at 1.04x, receiving bids for 7.77 Lakh shares against the 7.5 Lakh shares set aside. 

Retail investors followed with bids for 2.2 Cr shares against the 2.89 Cr shares reserved, resulting in a 0.76x subscription.

Interest from non-institutional investors (NIIs) remained subdued, with bids for only 45 lakh shares out of the 4.34 Cr on offer, translating to a 10% subscription rate.

Qualified institutional buyers (QIBs) showed more activity today, with 1.26 Cr shares bid for out of the 8.7 Cr shares reserved for them.

Notably, the company started with a dull listing on Wednesday (November 6), with a mere 12% subscription. 

Swiggy secured INR 5,085 Cr from anchor investors on November 5. 

It is pertinent to note that the company has set a price band of INR 371 to INR 390 per share for the public offering. At the upper end, Swiggy aims to raise INR 11,324 Cr through the listing.

Additionally, the fresh issue component of the IPO has been expanded to INR 4,999 Cr, while the offer for sale (OFS) component has been slightly reduced to 17.5 Cr shares. 

Through the OFS, early backers Accel India and Elevation Capital stand to earn returns exceeding 34x by partially divesting their stakes.

Swiggy is targeting a valuation of $11.3 Bn for the IPO—26% lower than its previous target of $15 Bn. The company’s shares are anticipated to debut on the BSE and NSE on November 13.

Meanwhile, for Q1 FY25, Swiggy reported a consolidated net loss of INR 611 Cr, up 8% year-on-year, while its operating revenue rose by 35% YoY to INR 3,222.2 C r.