Zero Listing Gains? Swiggy IPO GMP Nosedives To Rs 2 On Final Bidding Day

Swiggy launched its initial public offering on Wednesday, allowing investors to subscribe until Nov. 8. As of 7:28 a.m. on the final day of bidding, the company's IPO shares were trading with a grey market premium of Rs 2, representing 0.51% premium over the upper end of the price band set at Rs 390.

This marks a steep decline from a GMP of Rs 25 on Oct. 29, when the shares began trading in the unlisted market.

The IPO was subscribed 35% on its second day, and 12% on its first day of subscription.

It is to be noted that GMP is not an official price quote for the stock and is based on speculation. 

Swiggy's initial public offering, one of the largest offers this year, is aimed at raising a total of Rs 11,327.4 crore.

The price band for the IPO is set between Rs 371 and Rs 390 per share, with a minimum application size of 38 shares. The food-delivery business raised Rs 5,085 crore by allocating 13.03 crore shares to high-profile anchor investors.

Swiggy's revenue in the quarter ended June 2024 stood at Rs 3,222.2 crore. In the fiscal ended March 31, 2024, it reported a revenue of Rs 11,247 crore, up 36.1% from Rs 8,264.59 crore in fiscal 2023.

The company saw an improvement in losses, reducing from Rs 4,275.74 crore in fiscal 2023 to Rs 2,208.01 crore in fiscal 2024. Its loss in the June quarter of this fiscal stood at Rs 611 crore.

Swiggy's earnings were primarily driven by food delivery, which contributed Rs 1,729.63 crore or 53.7% of the total revenue in the June quarter. Quick commerce business followed with a mop-up of Rs 403.3 crore or 12.5% of the revenue, followed by out-of-home consumption segment, which accounted for only Rs 46.7 crore or 1.4%.

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.