Guwahati: Swiggy Limited, has launched its Initial Public Offering (IPO) on November 6, 2024. The IPO experiencing a subdued response from investors is set to close on November 8, 2024. The subscription rate stood at 12% on the first day while being subscribed only 15% so far.
With a price band of Rs. 371 to Rs. 390 per equity share, each has a face value of Rs. 1. The offer includes a fresh issue of equity shares aggregating up to Rs. 44,990 million and an offer for sale by existing shareholders of up to 175,087,863 shares.
The IPO received bids for 2,40,61,258 shares as of 10:44 am on November 7, representing 15% of the total issue size of 16,01,09,703 shares. While the retail segment marked a subscription rate of 68%, the non-institutional investors subscribed at a rate of 9%. Qualified institutional buyers (QIBs) are yet to participate in the bidding, according to reports.
Additionally, 750,000 equity shares have been reserved for eligible employees under the Employee Reservation Portion, which will constitute 5 percent of the post-offer paid-up equity share capital.
The company plans to list its shares on both the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE). The IPO is being managed by leading investment firms including Kotak Mahindra Capital Company, J.P. Morgan India, Citigroup Global Markets, and others.
Swiggy plans to raise Rs 4,499 crore through primary capital, with existing investors offering shares worth Rs 6,828 crore for sale. The price band for the issue has been set at Rs 371- Rs. 390, indicating that investors are willing to pay approximately Rs 410 per share in the grey market.
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Swiggy has incurred net losses in each year since incorporation and negative cash flows from operations. If it is unable to generate adequate revenue growth and manage expenses and cash flows, it may continue to incur significant losses. Additionally, if Swiggy fails to retain its existing user base or acquire new users in a cost-effective manner, its business, financial condition, and results of operations could be adversely affected.
On the other hand, Navi Technologies, a fintech company founded by Sachin Bansal, is set to launch its IPO, offering financial services such as loans, insurance, and mutual funds. Tata Technologies, a subsidiary of Tata Motors, is also expected to launch its IPO due to its strong market presence and growth potential. Edtech giant Byju's also plans to launch its IPO to fund global expansion and enhance its product offerings among others.
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