Swiggy IPO Achieves 12 Percent Subscription on First Day of Offer Amid Strong Retail Interest

The initial public offering (IPO) of Swiggy Ltd, a major player in food delivery and quick-commerce, saw a 12% subscription on its first day. According to NSE data, there were bids for 1,89,80,620 shares against the 16,01,09,703 shares available. Retail individual investors subscribed to 54% of their quota, while non-institutional investors subscribed to 6%.

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Swiggy had earlier secured Rs 5,085 crore from anchor investors. The company's shares are open for public subscription from November 6 to 8, priced between Rs 371 and Rs 390. Swiggy aims to raise Rs 11,327 crore through this IPO. This includes a fresh issue of shares worth Rs 4,499 crore and an offer for sale (OFS) amounting to Rs 6,828 crore.

Swiggy's Valuation and Market Comparison

Swiggy's valuation is estimated at approximately USD 11.3 billion or about Rs 95,000 crore at the upper price band. In comparison, its competitor Zomato went public in July 2021 and currently holds a market valuation of Rs 2.25 lakh crore. Swiggy plans to use the funds from the fresh issue for various purposes.

The company intends to invest in technology and cloud infrastructure. Additionally, funds will be allocated for brand marketing and business promotion. Part of the proceeds will also go towards debt repayment and supporting inorganic growth along with general corporate purposes.

Lead Managers for Swiggy's IPO

Kotak Mahindra Capital Company Limited is among the lead managers for the offer. Other book-running lead managers include JP Morgan India Private Limited and Citigroup Global Markets India Private Limited. BofA Securities India Limited and Jefferies India Private Limited are also involved.

ICICI Securities Limited and Avendus Capital Private Limited complete the list of lead managers. These firms are responsible for managing Swiggy's IPO process efficiently. Their expertise is crucial in ensuring a successful share sale.

Swiggy's IPO marks a significant step in its growth journey. The funds raised will support its expansion plans and strengthen its market position. Investors have shown interest despite the competitive landscape with rivals like Zomato already established in the market.