Shares of Swiggy made a surprising debut on Dalal Street on Wednesday as the food-tech delivery major was listed at Rs 420 on NSE, a premium of 7.69 per cent over the issue price of Rs 390 apiece. Similarly, the stock kicked-off its maiden trading session with a premium of 5.64 per cent at Rs 412 on BSE over the given issue price.
The listing of Swiggy has been above the expectations. Ahead of its debut, shares of Swiggy were commanding a grey market premium (GMP) of Swiggy, a premium of Rs 2 in the unofficial market, suggesting a flat listing for the investors. The stock was consistently losing GMP following a muted bidding.
Bengaluru-based Swiggy sold its IPO between November 6 and November 8. It had offered its shares in the fixed price band of Rs 371-390 per share with a lot size of 38 shares. It raised a total of Rs 11,327.43 crore from its IPO, which included a fresh share sale of Rs 4,499 crore and an offer-for-sale (OFS) of up to 175,087,863 equity shares.
The issue was overall subscribed merely 3.59 times as the qualified institutional bidders (QIBs) came to rescue as their quota was booked 6.02 times. The portions retail investors and employees were subscribed 1.14 times and 1.46 times, respectively. However, The portion for non-institutional investors (NIIs) was booked only 41 per cent.
Swiggy, founded in 2014, provides its users with an easy-to-use platform that they can access via a single app to search, select, order, and pay for food (food delivery), grocery and household goods (Instamart) and have orders delivered to their homes via an on-demand delivery partner network.
Brokerages mostly had a positive view on the issue and suggested subscribing for a long term. Kotak Mahindra Capital, Citigroup Global India, Jefferies India, Avendus Capital, JP Morgan India, BofA Securities India and ICICI Securities served as the book running lead managers of the Swiggy IPO, while Link Intime India was appointed as the registrar for the issue.