Swiggy IPO Surpasses Expectations With 8% Premium On Debut

Swiggy’s initial public offering (IPO) made an impressive debut, surpassing expectations and catching everyone by surprise.

The food delivery giant from Bengaluru listed at Rs 420 on the National Stock Exchange (NSE), reflecting a 7.69 per cent premium over its issue price of Rs 390. On the Bombay Stock Exchange (BSE), the stock opened at Rs 412, marking a 5.64 per cent premium. This strong debut was particularly notable given the initially modest grey market premium (GMP), which had suggested a flat listing.

The IPO was open for subscription from November 6-8, with shares offered in the price band of Rs 371–390. Swiggy raised a total of Rs 11,327.43 crore, which included a fresh share sale of Rs 4,499 crore and an offer-for-sale (OFS) of up to 175,087,863 shares.

Despite a modest subscription rate of just 3.59 times overall, the qualified institutional buyers (QIB) portion was oversubscribed 6.02 times. Retail and employee portions saw more limited demand, with subscriptions recorded at 1.14 and 1.46 times, respectively. Non-institutional investors (NIIs) showed less interest, with only 41 per cent of the shares being subscribed.

Founded in 2014, Swiggy has firmly established itself as a leader in India’s online food delivery space. The company’s platform allows users to easily search, order, and pay for food, groceries, and household goods via its app.

The company is now focusing on expanding its Instamart service and tapping into the rising demand for convenience in smaller cities. By reducing the market share gap with competitors like Zomato and Blinkit, this strategy seeks to improve its standing in the rapidly expanding quick commerce and food technology sectors.

The IPO was managed by prominent investment banks including Kotak Mahindra Capital, Citigroup Global India, Jefferies India, Avendus Capital, JP Morgan India, BofA Securities India, and ICICI Securities, with Link Intime India acting as the registrar.

Overall, Swiggy’s strong market debut reflects its solid standing in the food-tech sector and its potential for sustained growth, despite the relatively tepid response from certain investor categories during the IPO phase.