 "Swiggy IPO opens on November 6: Here's how GMP is faring ahead of opening")
The unlisted shares of food delivery giant Swiggy are trading at a premium in the grey market as the company prepares for its initial public offering (IPO), scheduled to open on Wednesday, November 6, 2024. Grey market sources report that Swiggy’s unlisted shares, were currently priced at a Rs 25 premium—representing a 6.41 per cent gain over the IPO’s upper price band of Rs 390. Notably, Swiggy IPO grey market premium has dropped from Rs 130 recorded on October 28, 2024.
Grey market premiums (GMP) often reflect market sentiment and investor demand for an IPO. GMP indicates the price investors are willing to pay above the issue price, influenced by factors such as company financials, industry trends, IPO pricing, investor sentiment, and global economic conditions. A positive GMP usually suggests strong demand and potential for a higher listing price, whereas a negative GMP may signal lower demand and a lower listing price.
Softbank-backed Swiggy IPO will be open for public subscription from Wednesday, November 6, to Friday, November 8, 2024. Bidding for anchor investors is expected to take place on Tuesday, November 5, 2024.
Swiggy IPO comprises a fresh issue of 115,358,974 shares, and an offer for sale of 175,087,863 shares with a face value of Re 1 apiece.
Swiggy has set a price band of Rs 371-390 per share, with a minimum lot size of 38 shares. Retail investors will require Rs 14,820 to apply for one lot of 38 shares. The IPO also includes a reservation for up to 750,000 shares for employees, offered at a Rs 25 discount to the issue price.
The basis of allotment is expected to be finalised on November 11, 2024, with shares likely to be credited to investors’ demat accounts by November 12, 2024. Swiggy’s shares are set to debut on the BSE, and NSE on November 13, 2024.
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Link Intime India is the registrar for the issue.
JP Morgan India, BofA Securities India, Jefferies India, Kotak Mahindra Capital Company, Citigroup Global Markets India, Avendus Capital, and ICICI Securities, are the book running lead managers of Swiggy IPO.
Swiggy plans to use the IPO proceeds to invest in its subsidiary Scootsy for purposes including repayment of borrowings, expansion of its Dark Store network for Quick Commerce, technology and cloud infrastructure upgrades, brand marketing, and potential acquisitions.