Swiggy IPO shares headed for a muted stock market debut today? check GMP before listing

Shares of Swiggy is set to make a muted debut at Dalal Street on Wednesday, November 13. The food-tech major is likely to have a soft landing at Dalal Street, thanks to the diminishing premium in the unofficial market. Investors, who bade for the loss-making, may have to trim their expectations from the new age internet player.

Grey market premium (GMP) of Swiggy has remained on the sidelines considering the rising volatility in the markets and a muted response from investors during the bidding process. Last heard, the company was commanding a premium of Rs 2 in the unofficial market, suggesting a flat listing for the investors.

Shivani Nyati, Head of Wealth at Swastika Investmart recommended a cautious approach on Swigg. "Investors with a high-risk tolerance and a long-term perspective may consider the IPO, but it's essential to acknowledge the potential risks associated with the company's current financial position and the broader market uncertainties," she said.

Bengaluru-based Swiggy ran 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. The company 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 saw a moderate investor interest and its offerings aims to drive future profitability, said Akriti Mehrotra, Research Analyst at StoxBox. "Swiggy is also focused on accelerating its Instamart service and narrowing the market share gap with competitors. We recommend holding Swiggy shares with strong growth potential for a medium- to long-term investment outlook," it said.

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 Swiggy and suggested subscribing for a long term. Kotak Mahindra Capital, Citigroup Global India, Jefferies India, Avendus Capital, JP Morgan India, BofA Securities and ICICI Securities were the book running lead managers of the Swiggy IPO, while Link Intime India was the registrar for the issue. Shares shall be listed on both BSE and NSE.