Food delivery platform Swiggy received a modest response on the first day of its initial public offering (IPO), reaching just 12% subscription. The Bengaluru-based company, valued at $11.3 billion (around Rs 95,000 crore), aims to raise Rs 11,327 crore, of which Rs 5,085 crore has already been secured from anchor investors.
According to data from the National Stock Exchange, Swiggy’s IPO drew bids for 1,89,80,620 shares out of the 16,01,09,703 shares on offer. The IPO includes a fresh issue of shares worth Rs 4,499 crore and an offer for sale (OFS) of Rs 6,828 crore.
The retail individual investor (RII) segment showed greater interest, with a 54% subscription, while non-institutional investors subscribed to 6% of their allocated shares. Swiggy’s shares are available for subscription in the price range of Rs 371 to Rs 390 until November 8.
Swiggy intends to use the funds raised from the fresh issue for technology upgrades, cloud infrastructure expansion, brand marketing, business promotion, debt repayment, and potential acquisitions. The IPO is managed by lead managers including Kotak Mahindra Capital, JP Morgan India, Citigroup Global Markets India, BofA Securities India, Jefferies India, ICICI Securities, and Avendus Capital.
Swiggy’s primary competitor, Zomato, which went public in 2021, currently holds a market value around Rs 2.25 lakh crore, more than double that of Swiggy.