Swiggy Ltd's initial public offering (IPO) attracted a tepid response from investors on the first day (Day 1) of bidding process. As per BSE data available on Wednesday, the employee portion has received 74 per cent subscription as of 5 pm, while the category reserved for retailers has seen 54 per cent subscription. Non-institutional investors (NIIs) saw 6 per cent bids but the qualified institutional buyer (QIB) segment was yet to see a response.
Overall, the issue received 1,89,80,620 bids on Day 1 against 16,01,09,703 shares on offer with an overall subscription of 12 per cent. The three-day initial share sale will be open till Friday, November 8. The food and quick-commerce platform is selling its shares in the price band of Rs 371-390 apiece. Investors can apply for a minimum of 38 equity shares and in multiples thereafter.
The Rs 11,327.43 crore IPO of Swiggy includes a fresh share sale of Rs 4,499 crore and an offer-for-sale (OFS) of up to 17,50,87,863 equity shares by its existing selling shareholders amounting to Rs 6,828.42 crore. Bengaluru-based Swiggy is a professionally managed company, with no identifiable promoters.
Net proceeds from the issue will be utilised towards investment in the material subsidiary, Scootsy; for repayment or pre-payment of certain borrowings; making lease/license payments for dark Stores; investment in technology and cloud infrastructure; brand marketing; and business promotion expenses; funding inorganic growth and general corporate purposes.
Swiggy raised 5,085.02 crore via anchor investors by allocating 13,03,85,211 shares for Rs 390 apiece ahead of its IPO. Its anchor book included names like New World Fund, Fidelity, Omnis Portfolio Investments, Nomura, PGGM World Equity, Citigroup, Blackrock, Carmignac, Eastspring Investments, TOCU Europe, Integrated Core Strategies, CLSA, Matthews Asia Funds, Societe Generale and more.
Latest grey market premium (GMP)
In the grey market, Swiggy shares were last seen trading at a premium of 2.82 per cent (at Rs 401) against an issue price of Rs 390 (upper price band). The stock is likely to be listed on November 13.
Founded in 2014, Swiggy 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.