Fri Nov 08 08:58:45 UTC 2024: ## Swiggy IPO Over-Subscribed, Expected to List at Premium

**Bengaluru-based food delivery giant Swiggy’s initial public offering (IPO) concluded on November 8, garnering significant interest from investors.** The IPO, priced between ₹371 and ₹390 per share, was oversubscribed by 1.04 times on the third day of subscription.

**Institutional investors showed strong support, with the anchor book raising ₹5,085.02 crore on November 5.** The public offering was allocated 75% to qualified institutional buyers (QIBs), 15% to non-institutional investors (NIIs), and 10% to retail investors.

**Swiggy’s revenue surged by 34% between March 2023 and March 2024, while its losses narrowed.** Despite the positive performance, experts like Mohit Gulati, CIO of ITI Growth Opportunities Fund, expressed concerns about Swiggy losing its innovative edge to competitors like Zomato and Zepto.

**The IPO received strong demand, particularly from retail investors who subscribed at a rate of 97%.** The grey market premium (GMP) is currently at ₹2, suggesting a potential listing price of ₹392, a 0.51% premium over the IPO price.

**Brokerage houses advise investors to subscribe to the IPO with a long-term perspective.** They believe Swiggy is appropriately priced compared to its listed peer, Zomato.

**The fresh capital raised will be used for various purposes including expanding the network of dark stores for its quick commerce platform, Instamart, marketing and advertising initiatives, and technology and cloud-based system investments.**

**Swiggy’s IPO has generated a buzz in the market, attracting attention from investors keen on the growth potential of the food delivery and quick commerce sectors.** The company’s future success will depend on its ability to navigate the competitive landscape and maintain its market share while delivering on its growth plans.

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