Swiggy IPO: Will You Get Listing Gains? Check GMP

The initial public offering of online food and grocery delivery platform Swiggy Ltd. is set to open on Nov. 6. Ahead of the launch, the much-awaited mainboard issue has failed to garner significant traction in the unlisted market. 

The GMP trend of Swiggy IPO indicated a listing gain of 1.79%, even before the shares opened for subscription. According to InvestorGain, Swiggy's IPO GMP stood at Rs 7 at 2 p.m. on Nov. 5. Swiggy shares were likely to debut at Rs 397 on the NSE and BSE against the IPO's upper price band of Rs 390.

The GMP on Swiggy IPO has dropped by Rs 18 from its highest level of Rs 25, recorded last week. 

Investors must note that the GMP of an IPO is not the official stock price, and is subject to rapid changes. It only indicates the potential listing price of a stock.

The Swiggy IPO will be open for subscription between Nov. 6 and Nov. 8. Share allotment is likely to be done on Monday, Nov. 11.

The shares are set to list on the BSE and NSE on Nov. 13.

Swiggy IPO price band has been fixed at Rs 371 to Rs 390 apiece. Employees can bid for the shares at a Rs 25 discount. Retail investors must apply for at least 38 shares in a single lot, taking the minimum investment value in the category to Rs 14,820 for each application.

The much anticipated public offer is a combination of a fresh issue of 11.54 crore shares worth Rs 4,499 crore and an offer-for-sale of 17.51 crore shares totalling Rs 6,828.43 crore. The issue has a total offer size of Rs 11,327.43 crore. 

Link Intime India Pvt. is the registrar for the offer. The company has appointed 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. as the book running lead managers of the IPO.

In its red herring prospectus, Swiggy Ltd. said that the proceeds from its IPO would be used for investment in its subsidiary, Scootsy, and for repayment of debts and expansion of dark stores' network.

The company will also use the money for brand marketing and business promotion to boost visibility. Part of the proceeds will be invested in cloud infrastructure and technology, as well as inorganic acquisitions. The rest of the amount will go towards general corporate purposes. 

Swiggy Ltd. is one of the most popular online food delivery platforms in India. Apart from restaurant food, it also offers groceries and other daily need items through its quick commerce arm, Instamart. In the April-June quarter of FY25, Swiggy clocked a revenue of Rs 3,222.2 crore from operations, against Rs 2,389.8 crore in the same period last year. Loss after tax stood at Rs 611 crore, versus a loss of Rs 564.1 crore.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.