Swiggy IPO Day 1: The issue evokes a muted response. Do you know why analysts still recommend that high-risk investors apply for it?

Initial public offering (IPO) of Swiggy Limited, an e-commerce platform, opened for subscription on November 6, 2024. The bidding process lasts three days, with bids closing on November 8, 2024. The IPO issue size is Rs. 11,327.43 crore for a total offer of 290,446,837 shares. The company has set the price range between Rs 371 and Rs 390.

At last count (4 pm), the company received a total of 1,78,10,182 bids against 16,01,09,703 shares or just 0.11 times, NSE data showed. Non-institutional investors (NIIs) have subscribed for 0.05 times the quota available to them, while retail individual investors (RIIs) have applied for 0.52 times the number of shares offered to them. However, qualified institutional buyers (QIBs) have not yet shown interest in the IPO as subscription levels are at zero.

Why is Swiggy collecting Rs 11,327.43 crore?

Swiggy’s Rs 11,327.43 IPO contains an offer for shareholders worth Rs 6,828 crore. And the rest of the amount from investors is as follows:

• Rs 165 crore: Repayment or early repayment of loans to a Scootsy subsidiary
• Rs 1179 crore: Expansion of dark stores
• Rs 703 crore: Investments in technology and cloud infrastructure
• Rs 1115 crore: Brand Marketing, Promotional Expenditures and General Corporate Goals

Why do analysts recommend it for the long term?

Geojit Financial analysts have assigned a “follow” rating for a long-term investment outlook due to strong brand recognition, diversified offerings, integrated applications, rapid scaling, consistent innovation, dark store expansion and promising industry prospects.

Analysts at SBI Securities also recommended applying for the stock and holding it for the long term. Meanwhile, they also highlighted some of the company’s key risks such as user base risk, delivery partner retention, restaurant retention, retail and brand partners, dark store and technology chains.

Another domestic brokerage firm, MOFSL, said it has advised only “high-risk groups” to apply for Swiggy’s IPO in the long term.

Swiggy IPO: Key Details; date of listing and allotment, registrar, BRLM

Here are other details of Swiggy’s IPO, including share debut date, allotment date and official registrar:

What is the Swiggy IPO date?

The Swiggy IPO listing date is November 11, 2024, which means candidates will be able to check their status on November 12, 2024.

Who is the official registrar for Swiggy IPO?

The official registrar of Swiggy IPO is Link Intime India Pvt Ltd and people can check their status through this URL. ‘linkintime.co.in/initial_offer/public-issues.html’