Swiggy, India's leading food delivery giant, launched its highly anticipated initial public offering (IPO) on November 6, 2024, following a successful fundraising of ₹5,085.02 crore from anchor investors. The company aims to raise a total of ₹11,327.43 crore through its IPO, making it one of the most significant offerings in the Indian market this year.
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| Swiggy IPO Opens Today: Raises ₹5,085 Crore from Anchor Investors |
Key Details of the Swiggy IPO
The Swiggy IPO will remain open for public subscription from November 6 to November 8, 2024. The price band for the IPO is set between ₹371 and ₹390 per share, with the minimum lot size for investors being 38 shares. At the upper end of the price band, investors will need to invest ₹14,820 as a minimum bid.
The IPO will consist of two parts: a fresh issue of 11.54 crore equity shares worth ₹4,499 crore and an offer for sale (OFS) of 17.51 crore shares valued at ₹6,828.43 crore. The fresh issue proceeds will help Swiggy fund its business growth and operations, while the OFS will allow existing investors and stakeholders to exit or reduce their holdings.
Anchor Investors and Market Sentiment
The Swiggy IPO saw robust participation from anchor investors before its opening. The ₹5,085.02 crore raised from anchor investors reflects the strong confidence in the company, with major global and domestic institutional investors backing the offering.
As of today, Swiggy’s grey market premium stands at ₹11, signaling positive investor sentiment towards the IPO. However, it remains to be seen how the stock will perform once it is listed on the stock exchange, which is expected to happen on November 13, 2024.
Breakdown of Share Allocation
In line with the norms, the Swiggy IPO has allocated shares across various investor categories. A substantial 75% of the shares are reserved for Qualified Institutional Bidders (QIBs), while 15% are designated for Non-Institutional Investors (NIIs). Retail investors will have access to 10% of the total shares available. Furthermore, Swiggy has reserved 750,000 shares at a discounted price of ₹25 per share for its employees.
Who’s Selling in the Offer for Sale (OFS)?
A number of prominent investors will be selling shares through the OFS. These include Accel India IV (Mauritius) Ltd, Apoletto Asia Ltd, Alpha Wave Ventures, LP, Coatue PE Asia XI LLC, and several others. International investment firms like Tencent Cloud Europe B.V. and Norwest Venture Partners VII-A Mauritius are also involved in the offering.
What to Expect from the IPO and the Future
Swiggy's IPO comes at a time when the company has become a dominant player in India's food delivery market. With its broad customer base and significant market share, the company is well-positioned for future growth. The funds raised through this IPO will provide Swiggy with the capital it needs to expand its services, enhance technology, and further solidify its position in the competitive food delivery space.
For now, the market is eagerly watching to see how Swiggy’s shares will fare in the coming weeks. As the bidding process continues until November 8, 2024, investors are keeping an eye on the grey market premium and overall demand for the IPO.
Conclusion
The Swiggy IPO marks a significant milestone for the company as it takes a step towards becoming a publicly listed entity. With strong backing from anchor investors and the growing optimism surrounding the food delivery industry, this IPO is set to attract attention from both retail and institutional investors. As the subscription window closes on November 8, all eyes will be on the final listing on November 13, 2024, to gauge the future trajectory of Swiggy as a public company.
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