Swiggy IPO Oversubscribed As Institutional Buyers Rush In Final Hours

The initial public offering of Swiggy Ltd. was oversubscribed on its third and final day of bidding on Friday. The grey market premium was Rs 1 as of 5:30 p.m., according to InvestorGain.

Subscription stands at 3.59 times as of 7:00 p.m. Qualified institutional buyers have subscribed 6.08 times.

Swiggy's Rs 11,327.4-crore IPO comprises a fresh issue of 11.5 crore shares valued at Rs 4,499 crore and an offer for sale of 17.5 crore shares amounting to Rs 6,828.4 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. This takes the minimum investment amount for retail investors to Rs 14,820. For non-institutional investors or NIIs, the minimum investment requirement is 14 lots (532 shares) at Rs 2,07,480. Big NIIs, also referred to as NIIs, will need to apply for at least 68 lots (2,584 shares), amounting to Rs 10,07,760.

The food-delivery business raised Rs 5,085 crore by allocating 13.03 crore shares to high-profile anchor investors, including Fidelity and Blackrock, with sizeable participation from domestic investors.

• Issue opening date: Nov. 6.

• Issue closing date: Nov. 8.

• Issue price: Rs 371–390 per share.

• Fresh issue size: Rs 4,499 crore.

• OFS size: Rs 6,828 crore.

• Total issue size: Rs 11,327.4 crore.

• Market value at upper end of price band: Rs 87,299 crore.

• Lot size: 38 shares.

Founded in 2014, Swiggy offers an all-in-one app for food delivery, grocery shopping, and household essentials—all accessible through its extensive on-demand network.

Swiggy’s operations span four main areas:

• Food delivery: Ordering and delivery of restaurant food.

• Out-of-home consumption: Dining reservations and events.

• Quick commerce: On-demand delivery of groceries and household goods through Instamart.

• B2B supply chain and distribution: Logistics and warehousing solutions for wholesalers and retailers.

The company also experiments with innovations on its platform, with initiatives such as Swiggy Genie, Dineout, and more.

As of June 2024, Swiggy featured around 19,000 stock keeping units on Instamart and operated 557 dark stores across 32 cities. The same expanded to 605 stores across 43 cities by September. The company's total headcount stood at 5,401 employees as of June 30.

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%.

Food delivery business clocked a positive contributing margin of 6.4% in the June quarter, while quick commerce showed a negative margin of (−)3.18%, reflecting ongoing losses. Adjusted Ebitda in the first quarter was positive for food delivery at Rs 57.84 crore, but remained negative for quick commerce, and out-of-home consumption.

The IPO has been subscribed 3.59 times as of 7:00 p.m. on Friday.

• Qualified institutional buyers: 6.02 times.

• Non-institutional investors: 0.41 times, or 41%.

• Retail investors: 1.14 times.

• Employee reserve: 1.65 times.

The grey market premium of Swiggy was Rs 1 as of 4:32 p.m. on Nov. 8, implying a 0.26% lose over the IPO price, according to Chittorgarh's unit InvestorGain. The estimated listing price based on the GMP is Rs 391 per share.

Disclaimer: GMP is not an official price quote for the stock and is based on speculation. Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.