"Swiggy’s IPO Unveiled: Insights into Pricing and Market Demand"

Swiggy Limited has announced its IPO with a price range of ₹371 to ₹390 per equity share, having a face value of ₹1. The subscription period will begin on Wednesday, November 6, and end on Friday, November 8. Allocations for anchor investors are scheduled for Tuesday, November 5.

The IPO consists of a total value of Rs 11,327 crore, comprising a fresh issue of 11.54 crore shares worth Rs 4,499 crore and an offer for sale of 17.51 crore shares amounting to Rs 6,828.43 crore. Following this, the company's market capitalization is expected to be around Rs 87,299 crore.

Swiggy's IPO is now priced at a valuation of $11.3 billion, down from an earlier goal of approximately $15 billion. This decrease is linked to current market volatility and the underwhelming market debut of Hyundai India. 


The lower and upper price limits are set at 371 times and 390 times the face value of the equity shares. Due to the company's losses in the financial year 2024, as per restated consolidated financial data, both the basic and diluted EPS are negative, making the price-to-earnings ratio indeterminable. The lot size for the Swiggy IPO is 38 equity shares, with additional shares available in multiples of 38.

Tentatively, the basis of allotment for the Swiggy IPO shares is expected to be finalized on Monday, November 11. Refunds will be processed on Tuesday, November 12, and shares will be credited to the demat accounts of allottees on the same day after the refunds. The shares are anticipated to be listed on the BSE and NSE on Wednesday, November 13.

Gray market data

Nonetheless, the company has experienced subdued demand for its shares in the grey market.

Earlier today, the company set the IPO price between ₹371 and ₹390 per share. However, the grey market premium (GMP), which initially ranged from ₹25 to ₹30, has decreased to approximately ₹18. This suggests that grey market investors are currently willing to pay around ₹415 for a Swiggy share, reflecting a premium of about 4% over the issue price.

A month prior, Swiggy shares were trading at ₹515 in the unlisted market.

The book-running lead managers for the issue include Citigroup Global Markets India Pvt Ltd, Kotak Mahindra Capital Company Ltd, Jefferies India Pvt Ltd, J.P. Morgan India Pvt Ltd, Avendus Capital Pvt Ltd, ICICI Securities Ltd, and Bofa Securities India Ltd. The registrar handling the issue is Link Intime India Pvt Ltd.

About the Company 

Swiggy is a leading on-demand convenience platform in India, serving millions of customers every month. Established in 2014, its goal is to enhance urban living by providing exceptional convenience. With a strong presence in food delivery, Swiggy partners with nearly 200,000 restaurants across over 600 cities. Additionally, its quick commerce service, Swiggy Instamart, operates in 43 cities, delivering groceries and essential items across more than 20 categories within 10 minutes, as noted on its LinkedIn profile.


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