Swiggy IPO oversubscribed by 3.59x led by QIBs, employees

Food delivery and grocery major Swiggy’s initial public offering has been oversubscribed by 3.

59 times after a tepid response in the first two days.

The qualified institutional buyers (QIBs) portion was booked 6.

02 times — the highest, NII portion was booked 41 per cent and the retail investor’s portion was subscribed 1.

14 times.

The employees’ book was subscribed 1.

65 times.

The ₹11,300-crore IPO comprises fresh capital raise of ₹4,499 crore and an offer for sale (OFS) of 17.

51 shares worth ₹6,828 crore.

Swiggy IPO price band has been set at ₹371-390 per share.

The price band for the IPO is set between ₹371 and ₹390 per share, with a minimum application size of 38 shares.

This takes the minimum investment amount for retail investors to ₹14,820.

The food delivery giant has raised ₹5,085 crore from institutional investors, including Fidelity and Blackrock, with sizeable participation from domestic investors.

At the upper price band, Swiggy’s valuation is estimated at around ₹95,000 crore.

In comparison, rival Zomato, which went public in July 2021, currently holds a market valuation of ₹2.

25 lakh crore.

Swiggy IPO GMP is indicating a muted listing gain as the shares of the company are commanding a GMP in the price range of ₹1-2, according to IPO Watch and Investor gain which track the grey market activities.

Q-Comm segment Swiggy has a 34 per cent market share in food delivery compared to Zomato’s 58 per cent, while in quick commerce Swiggy’s Instamart has 20-25 per cent share, and Zomato’s Blinkit has an estimated 40-45 per cent share, according to brokerage estimates.

The company is betting big on enhancing quick commerce segment as it plans to allocate nearly ₹1,179 crore to its Instamart business.

The company will invest ₹755.

4 crore in expanding its dark store network, while lease and licence payments for dark stores would amount to ₹423.

3 crore.

At the end of the June quarter, Swiggy Instamart had 557 dark stores.

The fresh investment will take this number to 741.

Swiggy reported an operating revenue of ₹3,222 crore in the June quarter, with its net loss up at ₹611 crore from ₹564 crore a year ago.

During the same period, Instamart clocked a gross order value (GOV) of ₹2,724 crore and revenue of ₹403 crore.

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