Swiggy IPO Subscription Status Day 2: 32% Subscribed, Retail Investors Lead; Check GMP

Swiggy’s initial public offering (IPO) has generated mixed reactions on its second day of subscription, with a notable dominance of retail investor participation. As of noon on November 7, the IPO was subscribed 32% overall, with retail investors leading the charge, securing 74% of the shares. In contrast, the non-institutional investor portion remains undersubscribed at only 10%. The Bangalore-based food delivery and quick-commerce company aims to raise a total of Rs 11,327 crore through the offering, consisting of a fresh issue of Rs 4,499 crore and an offer for sale (OFS) worth Rs 6,828 crore.

Despite the strong retail investor interest, Swiggy’s Grey Market Premium (GMP) is signalling a relatively lackluster market debut. The GMP has been fluctuating between Rs 6-15, suggesting a modest listing gain of only 1-3%. This is far from the explosive market entries seen by other tech IPOs in recent years. Investors are advised to consider this modest premium as they weigh the potential risks and rewards of the Swiggy IPO ahead of its listing on November 13.

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Swiggy’s IPO offers shares in the price band of Rs 371 to Rs 390, with an upper valuation of Rs 95,000 crore, positioning it as a significant player in the Indian market. However, when compared to rival Zomato, which holds a market valuation of Rs 2.25 lakh crore, Swiggy’s valuation still seems smaller, highlighting the competitive nature of the sector.

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The company plans to use the funds raised through the IPO for several purposes, including investments in technology and cloud infrastructure, brand marketing, debt repayment, and potential mergers and acquisitions. The initial proceeds are expected to support Swiggy’s long-term growth strategies, with a strong focus on enhancing its technological capabilities and expanding its presence in the competitive food delivery and quick-commerce market.

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For now, the market is eagerly awaiting the final subscription numbers, which will be revealed after the IPO closes on November 8. Until then, the subscription progress and GMP remain key indicators for potential investors looking for signals on Swiggy’s post-IPO performance.

[Disclaimer: The subscription status and GMP details are based on available data as of November 7, 2024. IPO investments are subject to market risks, and this information is for educational purposes only.]