Swiggy IPO: Could Rival Surpass Zomato In IPO, Listing? Know Date, GMP, Price, Allotment, Others Details

Swiggy IPO: Online food delivery app, Swiggy is all geared up to launch its Rs 11,300 crore IPO on November 6. Swiggy is a rival of already listed Zomato, which received strong demand during its public offer. Could Swiggy surpass Zomato in IPO subscriptions and listing? Let's understand, including other key details of the IPO.

Swiggy IPO:

The Rs 11,300 crore IPO will open on November 6, and subscriptions will be allowed till November 8. That being said, the bidding window for anchor investors will open on November 5. Bids can be made for a minimum of 38 Equity Shares and in multiples of 38 Equity Shares thereafter.

The price band for the IPO is fixed at 371 per equity share to Rs 390 per equity share of the face value of Rs 1 each.

Overall, the IPO comprises fresh issues worth Rs 4,499 crore and offers for sale of up to 175,087,863 equity shares by selling shareholders. Also, the IPO includes a reservation of up to 750,000 equity shares of face value of Rs 1 each, for subscription by eligible employees not exceeding 5% of its post-offer paid-up equity share capital.

Swiggy IPO GMP Today:

Ahead of the IPO, the latest grey market premium (GMP) for Swiggy IPO is at Rs 22 apiece on November 4, at around 07:01 Am. As per Investor Grain, with a price band of 390.00, Swiggy IPO's estimated listing price is Rs 412 (cap price + today's GMP). The expected percentage gain/loss per share is 5.64%.

In the current scenario, the single-digit listing prediction is lower compared to Zomato's actual listing of 51.3% premium on BSE, against its IPO price of Rs 76 apiece. However, it needs to be noted that GMP is the clear indication of the listing price, and a lot of factors such as demand in IPOs, subscription status, market trends, and sectoral sentiments among others will play a key role in listing price.

According to Sharekhan, GMP is a key, though unofficial, indicator of market sentiment and investor excitement before an IPO hits the official stock exchange. A positive GMP signifies robust demand, potentially impacting the opening market price post-listing. This overview provides a glimpse into the influential role GMP plays in navigating the dynamics of IPOs, offering investors insights into anticipated market interest and positioning strategies for potential gains. The IPO grey market is an intriguing space where investors gauge market sentiment before a stock hits the exchange.

Swiggy IPO Allotment, Listing Dates:

After the IPO subscriptions, Swiggy's allotment of status is likely to take place on November 11, 2024. Further, the initiation of refund or credit of shares in the demand account is to take place on November 12. Later, the IPO is expected to list on November 13, 2024.

Earlier, in a research report, brokerage Motilal Oswal, "We analyze key metrics from Swiggy's recently filed DRHP and compare them with those of Zomato. A cursory glance through the numbers indicates that Zomato now has market leadership in food delivery and quick commerce, the two key battleground areas for the players. While Zomato is undeniably Primus inter pares, the war for the wallet share of the urban affluent consumer has just begun, and it is too early to call the game. "

Further, Motilal said, "Zomato has been gaining market share in food delivery, but on the basis of GOV/MTU, Swiggy's cohorts appear more mature and stickier. In quick commerce, despite Swiggy's Instamart inventing the category, Blinkit has taken an early lead and Zepto continues to execute well. However, the market is nascent, and enough avenues exist to differentiate on SKUs and strategy, making it too early to declare winners (or losers)."

Lastly, Motilal added, Swiggy's approach of an integrated app offering vs. Zomato's multi-app approach (both at the back and the front end) helps it innovate faster (Instamart was born out of a similar synergy); Swiggy could again be at the forefront of food delivery innovation through Bolt, its 10-minute food delivery platform.