Swiggy’s IPO Gains 12 Pc Subscription on First Day Amid Moderate Institutional Interest

Swiggy’s initial public offering (IPO) saw a 12 percent subscription rate on its opening day, with a significant portion of the bids coming from individual investors, while qualified institutional buyers (QIBs) contributed minimally. High net worth individuals (HNIs) subscribed to 6 percent of their designated portion, retail investors contributed 54 percent, and employees subscribed 74 percent. Notably, the retail investor quota for this IPO is set at 10 percent, much lower than the usual 35 percent, while 75 percent of shares are reserved for QIBs. For the IPO to fully succeed, QIBs will need to reach full subscription.

Swiggy has already allocated shares worth Rs 5,085 crore to anchor investors from the QIB quota, leaving it in need of around Rs 3,400 crore in additional bids from institutional investors, who are typically active toward the close of the IPO period.

Swiggy’s Rs 11,327-crore IPO ranks as India’s sixth-largest in the domestic market and the second-largest this year, following Hyundai. The IPO involves a fresh capital raise of Rs 4,499 crore, which Swiggy plans to use to expand its dark store network, invest in technology and cloud infrastructure, enhance brand marketing, and support growth initiatives. Additionally, the IPO includes a secondary share sale worth Rs 6,828 crore by 10 investors, including Tencent, Accel India, and Apoletto Asia.

The price range for Swiggy’s IPO is set at Rs 371-390 per share, valuing the company at Rs 87,300 crore at the upper limit.