Swiggy IPO sails through with a push from QIB; grey market cool

Swiggy IPO was fully subscribed on the last day of its bidding on Friday 8 after a lukewarm response over the past two days.

The maiden share sale by the online food delivery company to raise Rs 11,327-crore offer received bids for 16.22 crore shares against 16 crore shares on offer. The quota for retail individual investors received 97 percent subscription while the non-institutional investors part got subscribed 38 percent. The qualified institutional buyers (QIB) got 1.38 times subscription, while the employees' book was subscribed 1.37 times.

Even as Swiggy Ltd's IPO sailed through on the final day of the bidding process, the GMP has fallen to near zero from around Rs 2-3 in the grey market, indicating a flat-to-negative listing potential at the bourses.

The tepid demand was reflected in the subscription response for the IPO, with only the institutional investors' portion fully subscribed so far. The retail and NII categories have not yet sailed through.

Grey market cool to Swiggy IPO

The online food delivery company has fixed the Swiggy IPO price band at ₹371 to ₹390 per equity share. The company aims to raise ₹11,327 crore from public issues, a mix of fresh issues and offers for sale (OFS). The  Swiggy IPO subscription status shows that the book build issue received a tepid response on the first day of bidding.

Market observers said that grey market sentiments remaining steady on the Swiggy IPO can be attributed to the trend reversal in the Indian secondary market. They noted that Swiggy shares lost sheen ahead of the issue opening date due to the sharp selling pressure in the Indian stock market. However, they expected some recovery if the Indian stock market extends its winning streak in upcoming sessions.