Swiggy IPO Debuts with Strong Listing on Stock Markets
Swiggy, India's popular online food and grocery delivery platform, saw its shares make a positive debut in the stock market today, Wednesday. The company's shares opened at Rs 412 on the Bombay Stock Exchange (BSE), a 5.6% premium to the IPO price of Rs 390. Similarly, on the National Stock Exchange (NSE), Swiggy shares are listed at Rs 420, reflecting a rise of 7.6% from the IPO price.
Grey Market Trends Were Flat Before Listing
Interestingly, Swiggy's stock listing was a surprise since its unlisted shares were trading flat in the grey markets before the official listing. The grey market, which tracks the unofficial trading of shares before officially listing on the stock exchanges, showed little movement. However, the official listing on Wednesday exceeded expectations, showing strong investor interest.
Details of the Swiggy IPO
The Swiggy IPO, which opened for subscription last week, was a large public offering worth Rs 11,327.43 crore. The offer included two components: a fresh issue of 115,358,974 shares and an offer for sale of 175,087,863 shares. The IPO shares were offered in a price band between Rs 371 and Rs 390, with a minimum lot size of 38 shares.
The issue was managed by several leading financial institutions, including Kotak Mahindra Capital Company, Citigroup Global Markets India, and ICICI Securities. Link Intime India was the registrar for the IPO.
Swiggy IPO Over-Subscribed by 3.59 Times
The Swiggy IPO received strong demand from investors. The offering was oversubscribed by 3.59 times, with the majority of interest coming from Qualified Institutional Buyers (QIBs), who subscribed to the offer 6.02 times. Retail investors also showed interest, subscribing to the IPO 1.14 times. The basis of share allotment was finalized on November 11, 2024.
How Swiggy Plans to Use IPO Funds
Swiggy plans to use the funds raised from the IPO to support its growth. The company will invest in its subsidiary, Scootsy, for purposes such as debt repayment, expanding its Dark Store network for Quick Commerce, and upgrading its technology and cloud infrastructure. Swiggy also intends to invest in brand marketing and potential acquisitions to strengthen its market position.
About Swiggy
Swiggy is a leading platform in India for food delivery, grocery shopping, and household items. Through its app, users can browse, order, and pay for food, groceries, and other products, which are then delivered to their doorstep. The company has become a household name in India, offering convenience to millions of users across the country.
Also read: India's Retail Inflation Rises to 6.21% in October 2024, Hitting 14-Month High
SUMMARY
Swiggy's shares made a strong debut on the stock exchanges today, opening at Rs 412 on the BSE (5.6% premium) and Rs 420 on the NSE (7.6% premium) compared to the IPO price of Rs 390. This positive listing defied grey market trends, where Swiggy's unlisted shares had been trading flat.
The IPO raised Rs 11,327.43 crore and included a fresh issue and an offer for sale of over 290 million shares. The IPO was oversubscribed by 3.59 times, with strong participation from Qualified Institutional Buyers (QIBs) and retail investors. The share allotment was finalized on November 11, 2024.
Swiggy plans to use the funds raised for expanding its subsidiary Scootsy, repaying debt, enhancing technology infrastructure, and marketing efforts. The company is a major player in India's online food and grocery delivery market, offering users a convenient platform for ordering and delivery.
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