[Update] Swiggy IPO: Led By QIBs, Public Issue Subscribed 3.59X

Update | November 8, 7:10 PM

Foodtech major Swiggy’s INR 11,324 Cr IPO was oversubscribed on the final day of bidding. The public issue received bids for 57.53 Cr shares as against 16.01 Cr shares on offer, resulting in 3.59X subscription.

According to BSE data, the issue received the highest interest from qualified institutional buyers (QIBs). The QIBs bid for 52.3 Cr shares against the 8.69 Cr shares on offer, translating to 6.02X subscription.

The retail investor quota was subscribed 114% at the end of Day 3, while the employee portion was oversubscribed 1.65 times. However, the portion reserved for non-institutional investors was undersubscribed. They placed bids for 1.79 Cr shares against the 4.34 Cr shares on offer, translating to a mere 41% subscription.

Update | November 8, 2:15 PM

Foodtech major Swiggy saw its IPO fully subscribed on the third and final day of the offering. The shares reserved for Retail Individual Investors (RIIs) surpassed 100% subscription with 2.95 Cr bids getting placed by 2:12 PM against 2.89 Cr shares on offer.

Update | November 8, 12:34 PM

Foodtech major Swiggy’s INR 11,324 Cr IPO continued to receive a tepid response on the third day of the bidding, with the public issue getting subscribed 95.42% so far. 

According to BSE data, as of 12 PM, the company received bids for 15.32 Cr shares, as against 16.01 Cr shares on offer for bidding.

Notably, the employee segment is still leading the way, seeing 1.34X subscriptions, with bids received for 10.05 Lakh shares as against 7.50 Lakh shares reserved for them.

Qualified institutional buyers placed bids for 9.95 Cr shares as against 8.69 Cr shares on offer. This resulted in an oversubscription for 1.24. 

Trailing behind was the portion reserved for the Retail Institutional Investor with 0.96X subscription. By noon, bids were placed for 2.78 Cr shares as against 2.89 Cr on offer. 

The shares reserved for the non-institutional investors showed the most lukewarm response with bids getting placed for only 1.60 Cr shares while a total of 4.34 Cr shares were on offer.

The company kickstarted its three-day IPO marathon with a dull response from investors on Wednesday (November 6), and a mere 12% subscription. This was followed by the public issue getting subscribed 35% at the end of the second day. 

For the IPO, the company has earmarked the price band of INR 371 to INR 390 per share. At the upper end, Swiggy aims to raise INR 11,324 Cr through the listing. 

While the company expanded the fresh issue component of the IPO to INR 4,999 Cr, the offer for sale (OFS) component was slightly reduced to 17.5 Cr shares. Early investors in the likes of Accel India and Elevation Capital stand to earn returns exceeding 34x by partially divesting their stakes through the OFS. 

It is pertinent to note that Swiggy secured INR 5,085 Cr from anchor investors on November 5. 

With the foodtech major set to make its public listing on BSE and NSE on November 13, analysts at SBI Securities and Bajaj Broking have assigned a ‘subscribe’ rating to Swiggy’s IPO  from a long-term investment perspective. 

Notably, the company is moving ahead with its IPO despite ongoing financial losses. Swiggy’s consolidated net loss widened by over 8% year-on-year (YoY) to INR 611 Cr in the June quarter (Q1) of FY25 while operating revenue increased 35% YoY to INR 3,222.2 Cr. 

On the other hand, its arch-rival Zomato is already a profitable company and outperforms Swiggy in most of the metrics across food delivery, quick commerce, and going-out verticals.