Swiggy, the leading food delivery and quick-commerce company, made a strong debut on the Indian stock exchanges on Wednesday, November 13, 2024. The company’s shares listed at ₹420 on the National Stock Exchange (NSE), reflecting a 7.7% premium over the issue price of ₹390. On the Bombay Stock Exchange (BSE), the shares opened at ₹412, a 5.64% premium. This positive listing marks a successful entry for Swiggy into the public markets following its ₹11,327.43 crore Initial Public Offering (IPO).
The Swiggy IPO, which was open for subscription from November 6 to November 8, saw a strong demand, with the issue receiving bids for 57.53 crore shares against 16 crore shares on offer, resulting in an overall subscription of 3.59 times. The IPO was priced in the range of ₹371-390 per share, and the retail segment was subscribed 1.14 times. However, the non-institutional investors (NII) category was undersubscribed, with a subscription of only 0.41 times. On the other hand, the qualified institutional buyers (QIB) portion was heavily oversubscribed, with a subscription rate of 6.02 times. The employee quota was subscribed 1.65 times, highlighting strong interest from Swiggy’s own workforce.
The IPO consisted of a fresh issue of 11.54 crore shares, aggregating to ₹4,499 crore, and an offer for sale (OFS) of 17.51 crore shares, raising ₹6,828.43 crore. Post-issue, Swiggy’s promoter shareholding will be reduced to 52.97% from 63.56% prior to the IPO. The company had already raised ₹5,085 crore from anchor investors ahead of the offering.
Proceeds from the IPO will be allocated to several strategic initiatives. Swiggy plans to invest in its subsidiary Scootsy, enhance its technology and cloud infrastructure, and support the expansion of its Quick Commerce segment by setting up Dark Stores. Additionally, funds will be directed towards brand marketing, promotional activities, potential acquisitions, and other general corporate purposes.
Swiggy has also offered its eligible employees 7,50,000 equity shares at a ₹25 per share discount, valued at ₹29.25 crore. The IPO’s allocation included 75% reserved for QIBs, 15% for non-institutional investors, and 10% for retail investors.
With its successful listing and the strong backing from institutional investors, Swiggy is set to continue its growth trajectory in the competitive food delivery and e-commerce sectors.
