Swiggy IPO 2024: Strong Investor Interest and Growth Plans Signal a Promising Market Debut

The much-anticipated Swiggy IPO, which opened on November 6, 2024, and closed on November 8, has captured significant attention in the Indian stock market. Swiggy, a leading online food delivery service in India, launched its Initial Public Offering (IPO) with the aim of raising Rs 11,327 crore and set a price band between Rs 371 and Rs 390 per share. This article provides an overview of Swiggy’s IPO subscription status, allotment process, and what investors can expect moving forward.

Swiggy IPO Subscription Summary

Swiggy’s IPO attracted considerable interest from various categories of investors, closing with a total subscription of 3.59 times the offered shares. Here’s a breakdown of the subscription numbers by investor category:

1. Qualified Institutional Buyers (QIBs): This segment led the IPO with the highest level of interest, subscribing 6.02 times the offered shares. QIBs placed bids for 523 million shares compared to the 87 million shares allocated, amounting to a substantial Rs 20,400 crore in bids. Institutional support is often a positive indicator for an IPO, reflecting confidence from experienced investors.

2. Retail Investors: Retail investors showed moderate interest, with a subscription rate of 1.14 times. This segment saw approximately 33 million shares bid against the 29 million shares offered, amounting to bids worth Rs 1,290 crore.

3. Non-Institutional Investors (NIIs): The NII category was less enthusiastic, subscribing at only 0.41 times. The bids placed by NIIs totaled Rs 698 crore, showing a relatively lower response compared to other categories.

4. Employees: Swiggy also reserved a portion of shares for its employees, who subscribed 1.65 times to their quota of 750,000 shares, amounting to bids worth Rs 48 crore.The overall response from investors highlights a strong interest in Swiggy’s public issue, particularly from institutional players, despite the company’s history of financial losses.

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Swiggy IPO Allotment and Listing Details

Swiggy’s IPO allotment is expected to be finalized by Monday, November 11. Investors who participated in the IPO can check their allotment status on the Bombay Stock Exchange (BSE) website or the Link Intime India website, the IPO’s registrar. Here’s a step-by-step guide on how to check your allotment status:

Steps to Check Swiggy IPO Allotment Status on BSE

1. Open the official BSE website.

2. Select “Equity” from the dropdown menu.

3. Choose “Swiggy” from the list of issues.

4. Enter your application number or PAN number.

5. Click on “Search” to view your allotment status.

Steps to Check Swiggy IPO Allotment Status on Link Intime India

1. Visit the Link Intime India website.

2. Select “Swiggy IPO” from the list of public issues.

3. Enter your PAN number and click on “Search.”

The shares are expected to be credited to investors’ demat accounts shortly after allotment. Swiggy’s shares are set to be listed on the stock exchanges on November 13, marking a significant event for the company and its investors.

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How Swiggy Plans to Use the IPO Proceeds

Swiggy aims to deploy the funds raised from the IPO strategically across several areas to strengthen its market position and drive growth. Key areas where Swiggy plans to utilize the proceeds include:

Investment in Subsidiary: A portion of the funds will be invested in Scootsy, a subsidiary focused on premium food delivery. This investment aligns with Swiggy’s strategy to capture a larger share of the market by catering to high-end customers.

Technology and Infrastructure: Swiggy is prioritizing advancements in technology and infrastructure, especially in cloud-based solutions. This move will likely enhance delivery speed and operational efficiency, crucial factors in the competitive food delivery industry.

Brand Marketing and Promotion: To maintain its brand presence and expand its customer base, Swiggy plans to allocate a portion of the IPO funds toward brand visibility and promotional activities over the next 4-5 years.

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Financial Performance and Challenges

Despite its popularity, Swiggy has faced financial challenges, reporting net losses since its inception. For the fiscal year ending March 2024, Swiggy posted a net loss of Rs 2,350 crore, an improvement from Rs 4,179 crore in the previous year. However, the company’s revenue has shown substantial growth, with total revenue from operations reaching Rs 11,247 crore in FY24, doubling from Rs 5,704 crore in FY22.

Swiggy’s IPO comes at a time when it faces intense competition from Zomato, another major player in India’s food delivery and quick-commerce sectors. Both companies are investing heavily in rapid delivery services to meet the increasing demand for quick-commerce, especially in grocery delivery. Swiggy’s expansion in this space demonstrates its commitment to diversifying and capturing more segments of the growing e-commerce market.

Market Expectations for Swiggy’s Listing

Swiggy’s IPO, valued at Rs 11,327 crore, is one of the largest public issues in India this year. The strong subscription rates from institutional investors indicate a favorable outlook for Swiggy’s listing on November 13. Investors are hopeful that Swiggy’s strong brand presence, combined with its aggressive growth strategy, will support a positive listing performance, even as the company navigates challenges on the profitability front.

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Swiggy’s listing will be closely monitored by the market, given its high-profile nature and the intense competition in the food delivery industry. The company’s ability to leverage IPO funds to drive growth and manage operational expenses will be key to sustaining investor confidence post-listing.