Swiggy IPO GMP, Subscription Status | Swiggy is one of India’s most popular and forefront e-commerce platforms. It initiated its initial public offering (IPO)for subscription on November 6, 2024. The IPO, which started on October 20 and is going to close on November 8, will allure significant interest from investors, both retail and institutional players, who are interested in the future of Swiggy as it plans to mobilise Rs 11,327.43 crore through fresh shares and OFS (offer for sale). The IPO has been priced at a band of Rs 371 and Rs 390 per share by the company.
Swiggy through its anchor round, raised about Rs 5,085 crore from a team of investors. From the company’s exchange filing, out of 13.03 crore equity shares, 75 anchor investors received the stock at Rs 390 per share. These were domestic players in the industry which include ICICI Prudential Mutual Fund, Kotak Mutual Fund, SBI Mutual Fund, Mirae Mutual Fund and Nippon Mutual Fund, hinting on a constant local support. Global companies including Capital Group, Fidelity Investments, Blackrock, HSBC, Allianz Global, and Norway’s Government Pension Fund Global also participated.
Swiggy IPO Subscription Status
Swiggy IPO opened for bidding on November 6 (day 1) and by 1 P.M, the IPO had got a subscription of 8 % for the primary issue with bids for 1.27 crore out of 16 crore on offer for IPO as per the data available on NSE. The specific sector interest was dominated by the retail individual investors’ segment with a 38% subscription while the non-institutional investors subscribed a 3%. Swiggy shares are supposed to debut by upcoming Wednesday on the exchanges with share allotments estimated by Monday, November 11.
Swiggy IPO Grey Market Premium (GMP)
Before the subscription, the GMP of Swiggy’s IPO reached Rs. 11 indicating the medium level of informal traders’ confidence in the listing day performance of the stock. Overall, the IPO got 0.07 times bid by midday on the first day of bidding by the public where the average retail bid was 0.33 while NII (non-institutional investors) was 0.03.
Swiggy’s Financials
Swiggy’s total revenue in the fiscal year 2024 (FY24) reached INR 3,222 crore as compared to FY23, reflecting a year-over-year growth of 34.8%. But more importantly, the company posted a net loss of Rs. 611 crore. Observers have pointed out that Swiggy has shifted its strategic focus to hyperlocal services and established a chain of ‘Dark Stores’ meant for faster delivery, which are game changers that could allow the company to achieve deeper penetration into the markets and work more efficiently.
In June 2024, Swiggy had about 11.3 crore registered users, thanks to its unified app experience that integrates food delivery, grocery delivery, and other services. The number of Dark Stores has risen from 301 in FY22 to 523 in FY24 to provide a quick shipping experience besides handling larger orders. The introduction of non-grocery categories is intended to improve basket sizes and ensure users are retained as part of Swiggy’s strategy.
Final Thoughts
As the company expands its services by offering more products through Dark Stores as well as adding non-food categories, it aims to target a bigger share of India’s elevating virtual grocery sector. To be precise, this market is expected to grow at a steady rate in the years to come due to factors such as ubanization and increased usage of the internet and technological services.
The organization depends on digital advertising and premium services to increase its revenues which may harm its customer base when discounts go down, although competition is still stiff with Zomato and Dunzo. However, through an integrated marketplace and customer-centric approach, Swiggy puts itself in a comfortable position to retain high-frequency users, which is particularly vital for success in the emerging commercial space.
