Swiggy IPO: This Is What The Grey Market Premium Indicates

The grey market premium for Swiggy's initial public offering opened at Rs 25, representing a 6.41% increase to the upper price of the IPO's offer range of Rs 371-390 per share.

The IPO is scheduled to open for subscription on Nov. 6 and will close on Nov. 8. This marks one of the most awaited book building offers of the year, with Swiggy aiming to boost its market presence and take on rivals like Zomato. Swiggy is rolling out the red carpet for retail investors by keeping valuations relatively modest.

The IPO features a fresh issue of 11.54 crore equity shares worth Rs 4,499 crore alongside an offer for sale of 17.51 crore shares of about Rs 6,828.43 crore, as detailed in their updated draft red-herring prospectus, totalling Rs 11,327.43 crore.

Co-founders Sriharsha Majety and Lakshmi Nandan Reddy Obul will offload 17.45 lakh shares each via the OFS route. Former chief technology officer Rahul Jaimini will sell 11.63 lakh shares and Cipla's Samina Hamied offers 27,520 shares.

Kotak Mahindra Capital Co., Citigroup Global Markets India Pvt., Jefferies India Pvt., Avendus Capital Pvt., JPMorgan India Pvt., Bofa Securities India Ltd. and ICICI Securities Ltd. are the bookrunning lead managers of the Swiggy IPO, while Link Intime India Pvt. is the registrar for the issue.

Assuming the upper price, the company is valued at around Rs 87,299 crore or $10.38 billion, which is also a tad lower than its earlier $11.2 billion target.

The company, which started its food delivery journey on Aug. 1, 2014, is based in Bangalore and now operates in 580 cities, offering variety, and reliability to customers.

Disclaimer: GMP is not an official price quote for the stock and is based on speculation.