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Food and grocery delivery company Swiggy is set to make its debut on Dalal Street today. This Rs 11,300-crore IPO will be the biggest public offering by a technology firm since Paytm's public issue in 2021. Ahead of the debut, let's take a look at key points: Muted debut expected Analysts told ET the stock is likely to witness a muted debut on the bourses as weakness in the broader market has dampened appetite among individual investors for newly-listed companies.
The grey market premium — the price in the unofficial market that investors pay for the unlisted shares before listing — was at Rs 2 for Swiggy on Tuesday, a 0.5% premium to the upper price band of Rs 390. Finance Financial Literacy i.
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14 times, while the portion reserved for employees saw 1.65x bidding. Non-institutional investors, which include corporates and high net worth individuals (HNIs), bid for only 41% of the shares reserved for them.
The bookbuilding for the offering, which commenced on November 6, saw qualified institutional buyers (QIBs) swoop in on the last day and bid for six times the shares allocated to them. ETtech Price band and valuation Swiggy set the price band for its IPO at Rs 371-390 per equity share of the face value of Re 1. At the upper end, the company’s valuation would reach $11.
3 billion. Issue details The Bengaluru-based company had upped the targeted primary fundraising through issuance of new shares to Rs 4,499 crore. In the offer for sale window, the company will sell 175.
1 million shares. Prosus, the largest investor in Swiggy, will divest 109.1 million shares in the company.
The investor is expected to recover more than half of its $1 billion investment by selling less than one-fifth of its holdings. Early investors such as Accel , Elevation Capital and Norwest Venture Partners will divest part of their holdings in Swiggy in the offer for sale. Swiggy’s founders Sriharsha Majety, Rahul Jaimini and Nandan Reddy are also partially selling their stakes.
Esop windfall ET reported on Tuesday that Swiggy’s listing will unlock Rs 9,000 crore worth of employee stock option plans and catapult nearly five hundred employees at the food delivery company into the ‘crorepati’ league. An estimated five thousand current and former employees of the Bengaluru-headquartered firm stand to gain from one of the largest wealth creation exercises in India’s startup sector. Swiggy’s total Esop pool is pegged at Rs 9,000 crore at a price of Rs 390 per share, the upper band of its IPO.
ETtech Use of capital The company will use a significant chunk of fresh capital to strengthen its quick commerce business. According to its red herring prospectus filed with market regulator Sebi, Swiggy plans to allocate Rs 1,179 crore to its quick commerce business. It intends to invest Rs 755.
4 crore in expanding its dark store network, while lease and licence payments for dark stores or warehouses would amount to Rs 423.3 crore. This will take Swiggy’s dark store count to 741, covering about 2.
59 million sq ft..
