Swiggy IPO subscribed 12% on day one; individual investors bid most

The initial public offering (IPO) of food delivery major Swiggy was subscribed 12 per cent on Wednesday, the opening day of the issue. Most of the bids came from individual investors, while the qualified institutional buyer (QIB) portion saw only a few bids.

 

The high net worth individual (HNI) portion of the issue was subscribed 6 per cent, retail investors subscribed 54 per cent, and employees subscribed 74 per cent. The retail quota for the IPO is set at only 10 per cent, compared to the typical 35 per cent. Meanwhile, 75 per cent of the shares are reserved for QIBs, which must secure full subscription for the IPO to succeed.

 

Swiggy has already allotted shares worth Rs 5,085 crore to anchor investors, drawn from the QIB quota. It requires approximately Rs 3,400 crore in bids from institutional investors, who typically invest on the last day of the IPO.

 

Swiggy’s Rs 11,327-crore IPO will be India’s sixth largest in the domestic market and the second largest this year after Hyundai. The IPO comprises a Rs 4,499 crore fresh fund raise, with Swiggy intending to use the proceeds to expand its dark store network, invest in technology and cloud infrastructure, undertake brand marketing and business promotion, and support inorganic growth.

 

The IPO also includes a Rs 6,828 crore secondary share sale by 10 investors, including Tencent, Accel India, and Apoletto Asia.

 

The price band for the issue is Rs 371-390 per share. At the top end, Swiggy will be valued at Rs 87,300 crore.    Hindustan Zinc OFS garners bids worth Rs 3,385 cr  Hindustan Zinc’s (HZL’s) share sale on Wednesday garnered bids for 67 million shares — worth Rs 3,385 crore — as against 105.6 million on offer. Most of the bids in the offer for sale (OFS) came around Rs 505.5, close to the base price set by the government. Shares of HZL fell 8.3 per cent in secondary market, trading to end at Rs 513. Another 10.6 million shares reserved for retail investors will be auctioned on Thursday. Through the OFS, the government was looking to divest 2.5 per cent stake in the commodities major. If the retail portion is fully subscribed, the government will be able to divest 1.83 per cent stake. Currently, the government holds 29.54 per cent stake in HZL. In August, Anil Agarwal-led Vedanta had launched a Rs 6,500-crore OFS to divest 3.17 per cent stake. The share sale, however, had garnered bids worth only Rs 3,200 crore.