Swiggy IPO set to hit the Street on Nov 6: Key things to know before subscribing to the issue

The IPO is set to open on November 6, with the SoftBank-backed company aiming to raise over Rs 11,000 crore from the primary market.

Notably, high-profile investors, including Norway’s sovereign wealth fund, Norges, and Fidelity, have reportedly shown strong interest, placing bids exceeding $15 billion—an amount 25 times the $605 million allocated for institutional investors in the offering.

Key things to know before subscribing to Swiggy IPO:

Market debut date: Swiggy is scheduled to debut on the stock market with its Initial Public Offering (IPO) on November 6, aiming to raise over Rs 11,000 crore.

Backed by SoftBank, the IPO will be open from November 6 to November 8.

Investor interest and bids: The IPO has attracted strong interest, with major investors like Norway's sovereign wealth fund, Norges, and Fidelity placing bids totaling over $15 billion.

This bid amount is 25 times the $605 million allocated for such investors in the IPO.

Price band and issue size: Swiggy has set a price band between Rs 371 and Rs 390 per share.

At the upper end, the company targets a total IPO size of Rs 11,327.43 crore, which includes a fresh issue of 11.54 crore shares worth Rs 4,499 crore and an offer for sale (OFS) of 17.51 crore shares, amounting to Rs 6,828.43 crore.

Lot size and investment requirement: Retail investors must apply for a minimum of 38 shares per lot, translating to a minimum investment of Rs 14,820 at the upper price limit of Rs 390.

Offer for Sale (OFS): The Offer for Sale (OFS) segment includes shares from existing investors such as Accel India IV (Mauritius), Apoletto Asia, Alpha Wave Ventures, Coatue PE Asia XI, DST EuroAsia, Elevation Capital, Inspired Elite Investments, MIH India Food Holdings, Norwest Venture Partners, and Tencent Cloud Europe.

Reservation and employee discount: The IPO reserves 75 percent of the shares for Qualified Institutional Buyers (QIBs), 15 percent for Non-Institutional Investors (NIIs), and 10 percent for retail investors.

Additionally, 750,000 shares are reserved for Swiggy employees, offered at a Rs 25 discount to the issue price.

Objectives of the IPO: Proceeds from the IPO will be directed towards investment in Scootsy, Swiggy’s material subsidiary, technology and cloud infrastructure enhancements, brand marketing, and general corporate purposes.

Funds will also support possible future acquisitions to expand Swiggy’s footprint.

Allotment and listing timeline: Allotments are expected by November 11, with listing on November 13.

Swiggy will credit shares to investors' demat accounts by November 12 and issue refunds to unsuccessful applicants on the same date.

Lead Managers and Registrar: Kotak Mahindra Capital, Citigroup Global Markets, Jefferies India, Avendus Capital, JP Morgan India, BofA Securities, and ICICI Securities are lead managers for the IPO, with Link Intime India serving as the registrar.

Grey Market Premium (GMP): The grey market premium (GMP) for Swiggy’s IPO stands at Rs 22 per share, implying a 5.64 percent premium over the issue price, with shares trading at approximately Rs 412 per share in the grey market.

About the company: Swiggy, a major online food and grocery delivery service, has pioneered hyperlocal commerce.

Financially, the company has recorded consolidated losses in the past three years.

For the fiscal year ending March 2024, Swiggy reported a net loss of Rs 2,350.24 crore on revenue of Rs 11,634.35 crore, with further losses of Rs 611.01 crore on revenue of Rs 3,310.11 crore for the quarter ending June 2024.