Swiggy IPO closes today: Current GMP signals lackluster debut
What's the story
The much-anticipated initial public offering (IPO) of Swiggy has entered its third and final day of subscription.
The food delivery giant's ₹11,327 crore IPO carries a price band of ₹371 to ₹390.
The offer consists of a fresh issue of 11.54 crore equity shares worth ₹4,499 crore and an offer-for-sale (OFS) portion of 17.51 crore shares worth ₹6,828.43 crore.
At the upper end of the price band, the SoftBank-backed firm will be valued around ₹87,300 crore.
Subscription update
Swiggy's IPO subscription status and future plans
On the third day of subscription, Swiggy's IPO was subscribed by 79% at around 11:50 am, as per BSE data.
With an upper price limit of ₹390 per share, the IPO is priced at an EV/sales ratio of 7.8x against a listed industry peer at 17.6x based on FY24 revenue.
Most of the fresh capital raised will be used to expand the network of dark stores to drive growth in quick commerce, as well as on marketing and advertising spends.
Share distribution
Swiggy's IPO share allocation and employee benefits
Swiggy has already garnered a lot of interest from institutional investors, having raised ₹5,085.02 crore through the anchor book launched on November 5.
Swiggy has allocated 75% of the shares for qualified institutional buyers (QIB), 15% for non-institutional investors (NII), and the remaining 10% for retail investors.
The company has also reserved 750,000 equity shares for its employees. Eligible employees can avail a discount of ₹25 per share.
Financial growth
Swiggy's financial performance and current GMP
Founded in 2014, Swiggy's revenue grew 34% from March 2023 to March 2024. The company's loss reduced from ₹4,179.31 crore to ₹2,350.24 crore during this time.
The only other listed player in this space is Zomato, which recently became profitable.
According to Investorgain, Swiggy's shares are currently trading at a premium of ₹2. This translates to an estimated listing price of ₹392 per share, considering the upper limit of the IPO price band (₹390).