Fri Nov 08 09:49:22 UTC 2024: ## Swiggy IPO Fully Subscribed, But Grey Market Shows Muted Listing Expectations

**Bangalore, India** – Swiggy’s highly anticipated Initial Public Offering (IPO) has closed fully subscribed after a three-day period, drawing strong interest from both institutional and retail investors. However, despite the successful subscription, the grey market indicates a muted listing performance for the food delivery giant.

The IPO, which opened on November 6th, saw a total of 170.60 million shares bid against the offered 160.11 million, indicating a strong demand. Retail investors subscribed 0.97 times, while Qualified Institutional Buyers (QIBs) drove the subscription with a 1.52 times oversubscription.

While Swiggy’s IPO has been met with enthusiasm, the grey market, an unofficial market where shares are traded illegally before listing, suggests a subdued performance post-listing. The grey market premium (GMP) has dwindled to Rs 2 per share, translating to a mere 0.51% premium over the IPO price of Rs 390.

Despite the mixed signals, Swiggy remains confident about its future growth. The company plans to use the IPO proceeds to fund strategic initiatives, including investments in its subsidiary Scootsy, upgrading its technology infrastructure, and expanding its brand marketing efforts.

Analysts remain cautious about Swiggy’s profitability, as the company continues to incur losses. However, the potential of the quick commerce segment, particularly the 10-minute food delivery offering, remains a significant growth driver.

Motilal Oswal Financial Services has recommended a “Subscribe for long term” strategy for high-risk investors, highlighting the nascent nature of the oligopoly market and Swiggy’s innovative offerings. The brokerage also noted that the IPO’s pricing at 7.8x FY24 Market Cap to Sales is considered reasonable compared to competitor Zomato, currently trading at 17.5x.

Swiggy’s shares are expected to be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE) on November 13th.

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