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PremiumSwiggy IPO Day 3 Highlights: Swiggy Ltd.'s initial public offer (IPO) received a mixed response from investors. By the end of the third and last day of its issue, Swiggy IPO had been subscribed 3.59 times. The public issue of the Bengaluru-based online food and grocery delivery company opened on November 6 and ended today, November 8. The IPO's price band has been set at ₹371 to ₹390 per share.
Swiggy aims to raise ₹11,327 crore from the IPO, which includes a fresh issue of shares valued at ₹4,499 crore alongside an offer for sale (OFS) of ₹6,828 crore. The food delivery giant has attracted significant interest from institutional investors, collecting ₹5,085.02 crore through the anchor book launched on November 5.
Stay tuned to our Swiggy IPO Live blog for the latest updates on review, subscription status, and more.
Swiggy concludes the largest consumer tech IPO in Asia this year with 3.59x oversubscription
- Swiggy IPO was the largest consumer tech IPO in Asia and the second largest IPO in Asia this year. It was largest sector IPO in India ever
- Strong institutional backing with over 6x QIB subscription and very diversified investor interest across domestic and international capital pools
- In a market where FPIs have pulled out over $11.2 billion in October, the Swiggy IPO has alone attracted $1.335 billion of FPI bids
Swiggy IPO was subscribed 3.59 times on the third and final day of issue led by QIBs. The retail portion was booked 1.14 times.
In the 10th year of its operations, Swiggy has achieved a significant milestone of 112.73 million users, who have transacted on their platform. This indicates its operational efficiencies, integrated app approach, innovations, customer retention and providing a seamless experience for its customers.
Swiggy has reported strong topline growth of ~40% CAGR over FY22-24 to ₹11,247cr in FY24, led by enhanced customer engagements and rapid delivery options in food delivery and Quick Commerce.
On the profitability side, Swiggy has witnessed setbacks and has recorded negative cash flow from operations since inception.
Going ahead, Swiggy's strategy to expand Dark Stores and introduce nongrocery categories is intended to enhance basket sizes and drive profitability.
Swiggy IPO was booked 3.59 times on the third day of issue. The QIB portion was booked 6.02 times - the highest among the three groups; NII portion was booked 41 per cent and the retail investor's portion was subscribed 1.14 times
"At the upper price band of ₹390, Swiggy is available at Mcap/sales of 7.8x (on FY24 financials), which appears to be fairly priced. We assign a “Subscribe" rating for the issue on a long-term investment basis, considering its strong brand recall, diversified offerings, integrated app, rapid scaling, consistent innovation, expansion of dark stores, and promising industry outlook," said Geojit Financial Services on Swiggy IPO
Swiggy has successfully pioneered the hyperlocal commerce industry in India, launching Food Delivery in 2014 and Quick Commerce in 2020, and is well-recognised as a leader in innovation. Currently, it is the second largest player in India in both the categories, which are large addressable markets, witnessing rapid online penetration and are relatively nascent with high growth headroom. Food delivery and Quick commerce are expected to grow at CAGR of ~17-22% and ~60-80% respectively over CY23-28.
Swiggy operates in a oligopoly market which is at a nascent stage, thus providing enough opportunities for players to create their niche. Swiggy’s innovation DNA is key to success and it could again be at the forefront through its new 10-minute food delivery offering. However, given that the company is still loss making at an aggregate level, and overall profitability may be some time away, we recommend only High Risk investors to ‘Subscribe for long term’. At the upper price band of ₹390, the issue is priced at 7.8x FY24 Market Cap to Sales and looks reasonably priced compared to Zomato which is trading at 17.5x.
Swiggy IPO Day 3 LIVE: Swiggy IPO has been subscribed 2.72 times so far on November 8, the third and the last day of the bidding process. The IPO received bids for 43.50 crore equity shares against 16.02 crore shares on offer, according to NSE data till 2:30 PM. The portion for retail investors received 1.04 times subscription, while the quota for non-institutional investors (NII) was subscribed 32%. The qualified institutional buyers (QIBs) part is booked 4.49 times and the employee portion has been subscribed 1.51 times so far.
Swiggy IPO Day 3 LIVE: According to Akriti Mehrotra, Research Analyst, StoxBox, Zomato has a competitive advantage over Swiggy, thanks to its size, profitability, and better growth indicators.
“Zomato exhibits higher market traction with a robust gross order value CAGR of 23.0% as opposed to Swiggy’s 15.5%. Its average order value growth also surpasses Swiggy’s, underscoring its operational effectiveness. Although the upcoming Swiggy IPO offers a chance for expansion, it is unclear how well it will be able to use its resources to close the gap with Zomato. Swiggy’s capacity to increase the size of its baskets for speedy commerce and broaden its dark store footprint will be crucial to the success of its IPO, which might have a big impact on its market share and profitability," said Mehrotra.
In the medium term, Mehrotra believes Zomato is a more appealing alternative for investors due to its favourable key performance indicators and track record. However, Swiggy might become a serious competitor if it successfully completes its IPO and exhibits a clear growth strategy, she added.
Swiggy IPO Day 3 LIVE: Swiggy IPO has been subscribed 2.13 times so far on November 8, the third and the last day of the bidding process. The IPO received bids for 34.14 crore equity shares against 16.02 crore shares on offer, according to NSE data till 1:30 PM. The portion for retail investors received 99% subscription, while the quota for non-institutional investors (NII) was subscribed 25%. The qualified institutional buyers (QIBs) part is booked 3.46 times and the employee portion has been subscribed 1.42 times so far.
Swiggy IPO Day 3 LIVE: Here’s a quick comparison between Swiggy and Zomato’s operations
Swiggy IPO Day 3 LIVE: Swiggy IPO has been fully subscribed on November 8, the third and the last day of the bidding process. The IPO received bids for 16.08 crore equity shares against 16.02 crore shares on offer, according to NSE data till 12:42 PM. The portion for retail investors received 97% subscription, while the quota for non-institutional investors was subscribed 38%. The qualified institutional buyers (QIBs) part is booked 1.33 times and the employee portion has been subscribed 1.37 times.
Swiggy IPO Day 3 LIVE: Swiggy aims to use the proceeds from the fresh issue for investments in technology and cloud infrastructure; brand marketing and business promotion; repaying debt; as well as allocating funds for inorganic growth and general corporate purposes.
Swiggy IPO Day 3 LIVE: Swiggy IPO has been subscribed 85% so far on November 8, the third and the last day of the bidding process. The IPO received bids for 13.55 crore equity shares against 16.02 crore shares on offer, according to NSE data till 12:00 PM. The portion for retail investors received 95% subscription, while the quota for non-institutional investors was subscribed 19%. The qualified institutional buyers (QIBs) part is booked 1.14 times and the employee portion has been subscribed 1.34 times.
Swiggy IPO Day 3 LIVE: The trend for Swiggy shares in the unlisted market remains muted on the last day of IPO subscription process. According to stock market observers, Swiggy IPO GMP today, or grey market premium today, is ₹2 per share. This indicates that in the grey market, Swiggy shares were trading higher by just ₹2 apiece, or at a premium of 0.51% to their IPO price of ₹390 per share.
Swiggy IPO Day 3 LIVE: Swiggy IPO received 47% subscription so far on November 8, the third and the last day of the bidding process. The IPO received bids for 7.46 crore equity shares against 16.02 crore shares on offer, according to NSE data. The portion for retail investors received 92% subscription, while the quota for non-institutional investors was subscribed 18%. The qualified institutional buyers (QIBs) part is booked 46% and the employee portion has been subscribed 1.29 times.
Swiggy IPO Day 3 LIVE: Swiggy, at upper price band of ₹390.0, is valued at Price/Sales, EV/Sales and P/BV multiple of 7.8x/7.3x/7.1x respectively of its FY24 financials on post issue capital. While comparing with Zomato, the issue appears to be fairly priced on all these parameters. We recommend investors to subscribe to the issue for a long term investment perspective, said SBI Securities
Swiggy IPO Day 3 LIVE: Swiggy IPO received 39% subscription so far on November 8, the third and the last day of the bidding process. The IPO received bids for 6.27 crore equity shares against 16.02 crore shares on offer, according to NSE data. The portion for retail investors received 89% subscription, while the quota for non-institutional investors was subscribed 15%. The qualified institutional buyers (QIBs) part is booked 34% and the employee portion has been subscribed 1.21 times.
Swiggy IPO Day 3 LIVE: The food delivery giant Swiggy has attracted significant interest from institutional investors, collecting ₹5,085.02 crore through the anchor book launched on November 5. The company aims to raise ₹11,327 crore from the IPO, which will include a fresh issue of shares valued at ₹4,499 crore alongside an offer for sale (OFS) of ₹6,828 crore.
Swiggy IPO Day 3 LIVE: Swiggy IPO received 35% subscription on November 7, the second day of the bidding process. The IPO received bids for 5.56 crore equity shares against 16.02 crore shares on offer, according to BSE data. The portion for retail investors received 84% subscription, while the quota for non-institutional investors was subscribed 14%. The qualified institutional buyers (QIBs) part is booked 28%. The employee portion has been subscribed 1.15 times.
Swiggy IPO Day 3 LIVE: Swiggy IPO has entered the third and the last day of the subscription period today, November 8. Swiggy IPO opened for subscription on Wednesday, November 6.
