Swiggy IPO Allotment on Monday: Will It Be A Multibagger Listing?

The highly anticipated Swiggy IPO, which opened for subscription on November 6 and closed on November 8, has drawn significant attention from investors. Priced in a range of Rs 371 to Rs 390 per share, the IPO was fully subscribed by the end of its final day. While retail investors showed steady interest, subscribing to 0.97 times of their allotted portion, the main demand came from Qualified Institutional Buyers (QIBs), who oversubscribed their quota by 1.52 times.

New Delhi: Swiggy's Rs 11,300 crore IPO, India’s second-largest public offering this year after Hyundai Motor India, received a solid response from investors. The IPO, which opened for public subscription from November 6 to November 8, was oversubscribed 3.59 times, with a strong boost from Qualified Institutional Buyers (QIBs) such as mutual funds.

In total, Swiggy’s IPO saw bids for 57.53 crore shares against the 16.01 crore shares available.

The IPO allotment will take place on Monday, November 11, while the listing is expected on Wednesday, November 13. Despite the oversubscription, grey market trends suggest a muted listing, with Swiggy’s shares trading at just Rs 1 higher than the issue price. This minimal ‘grey market premium’ (GMP) reflects market sentiment and indicates that investors expect the stock to list close to its issue price.

QIBs bid heavily, with their portion subscribed 6.02 times, while retail individual investors subscribed to 1.14 times their reserved portion.

Non-institutional investors, however, showed less enthusiasm, with only 41 per cent subscription in their quota. Swiggy’s IPO consists of a fresh issue of shares worth Rs 4,500 crore and an Offer for Sale (OFS) of Rs 6,800 crore. Among those selling shares through the OFS route are Accel India IV, Apoletto Asia, Alpha Wave Ventures, Coatue PE Asia, DST EuroAsia, Elevation Capital, Inspired Elite Investments, MIH India Food Holdings, Norwest Venture Partners, and Tencent Cloud Europe.

Early investors such as Accel and Elevation Capital are expected to see returns of up to 35 times on the shares they chose to sell, while SoftBank has decided to retain its stake in the company. Over the last three years, Swiggy has posted an average earnings per share (EPS) of -Rs 14.90, and a return on net worth (RoNW) of -35.

39 per cent. The IPO is priced at a price-to-book value (P/BV) of 11.60 based on its net asset value (NAV) of Rs 33.

61 as of June 30, 2024, and 7.31 based on its post-IPO NAV of Rs 53.36 per share at the upper price band.

Recently, Afcons Infrastructure’s IPO debuted at a 7 per cent discount, a trend that may signal caution among investors, with market expectations similarly subdued for Swiggy’s listing day. Get Latest News Live on Times Now along with Breaking News and Top Headlines from Companies, Business Economy and around the world..