Swiggy IPO day 2: GMP, subscription status to review. Apply or not?
- Swiggy IPO GMP today: According to stock market observers, shares of the company are available at a premium of ₹11 in the grey market today
Swiggy IPO day 2: Bidding for the initial public offering (IPO) of Swiggy Ltd began on 6th November 2024 and will remain open until 8th November 2024. This means investors have two days to apply for the public issue. The online food delivery company has fixed the Swiggy IPO price band at ₹371 to ₹390 per equity share. The company aims to raise ₹11,327.43 crore from public issues, a mix of fresh issues and offers for sale (OFS). According to Swiggy IPO subscription status, the book build issue received a tepid response on the first day of bidding. Meanwhile, Swiggy share price has remained steady in the grey market. According to stock market observers, shares of Swiggy are available at a premium of ₹11 in the grey market today.
Swiggy IPO GMP today
As mentioned above, Swiggy IPO GMP (Grey Market Premium) today is ₹11, which is unchanged from Wednesday's grey market premium. Market observers said that grey market sentiments remaining steady on the Swiggy IPO can be attributed to the trend reversal in the Indian secondary market. They noted that Swiggy shares lost sheen ahead of the issue opening date due to sharp selling pressure in the Indian stock market. However, they expected some recovery in the Swiggy IPO GMP if the Indian stock market extends its winning streak in upcoming sessions.
Swiggy IPO subscription status
On day 2 so far, the public issue had been booked 0.35 times, the retail portion of the book build issue had been subscribed 0.84 times, and the NII portion had been subscribed 0.14 times. The QIB portion was booked 0.28 times.
Swiggy IPO review
Giving a 'subscribe' tag to the book build issue, Dr Choksey FinServ said, "Swiggy's strategic focus on hyperlocal commerce positions it as a key player in the sector, driven by an innovation-led culture. With a consistent rise in Average Order Value (AOV) and a growing network of Dark Stores from 301 in FY22 to 523 in FY24, the company is well-equipped to enhance user engagement and operational efficiency. As of June 30, 2024, Swiggy reached 112.73 Mn users, demonstrating robust growth supported by a unified app experience that simplifies diverse service offerings. Expanding Dark Stores and introducing non-grocery categories aims to boost basket sizes and fulfil increasing consumer demand. Swiggy's customer-centric approach, characterized by high transaction frequency and a personalized user experience, ensures strong retention rates and a widening gap in Monthly GOV per MTU. Given these strengths and the projected growth of the online food delivery and Quick Commerce markets, Swiggy is poised for sustained growth. At the upper price band, the company is valued at 8x Price to Sales, offering a 76% discount to its competition. Hence, we assign a 'SUBSCRIBE' rating."
Indsec Securities has also assigned a 'subscribe' tag to the book build issue saying, "At an upper price band of ₹390/sh, the IPO is priced at EV/sales of 7.8x vs listed industry peer of 17.6x on FY24 revenue. Over FY22-24, the company's revenue has grown at a CAGR of 40.4% vs 70% for Zomato. The fresh proceeds would expand the dark store's network for quick commerce growth and marketing and promotional spending. Management has also stated that the business would continue to burn cash to achieve its objective of attaining large scale coupled with increasing competitive intensity in Quick commerce. We assign a "Subscribe for long term" rating to the IPO."
Swiggy IPO details
Swiggy IPO subscription will remain open until 8 November 2024. The most likely Swiggy IPO allotment date is 9 November 2024. In case Swiggy IPO allotment status is not declared on 9 November 2024, then we can expect share allocation on 11 November 2024. The book build issue is proposed for listing on the BSE and the NSE, and the most likely Swiggy IPO listing date is 13 November 2024.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
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