Swiggy IPO Day 1: Issue attracts muted response, know why analysts still recommend high-risk investors to apply for it?

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

At the last count (4:00 pm) the company received a total of 1,78,10,182  bids as against 16,01,09,703 shares or just 0.11 times , shows the NSE data. The non-institutional investors (NIIs) have subscribed for 0.05 times the quota available for them, while retail individual investors (RIIs) has applied for 0.52 times of the total shares offered to them. However, qualified institutional buyers (QIBs) have not been interested in the IPO so far because the subscription rate is zero.

Why Swiggy is raising Rs 11,327.43 crore?

The Rs 11,327.43 Swiggy's IPO contains an offer for sale of Rs 6,828 crore by selling shareholders. And other amount from investors goes to as follows:

• Rs 165 crore: Repayment or prepayment of borrowings of subsidiary Scootsy
• Rs 1,179 crore: Expansion of dark stores
• Rs 703 crore: Technology investments and cloud infrastructure
• Rs 1,115 crore: Brand marketing, promotion expenses, and general corporate purposes

Why do analysts recommend it for the long term?

Geojit Financial's analysts have assigned a 'subscribe' rating for a long-term investment perspective due to strong brand recall, diversified offerings, integrated app, rapid scaling, consistent innovation, expansion of dark stores, and promising industry outlook.

SBI Securities' analysts have also recommended applying for it and holding it for the long term. Meanwhile, they also highlighted some key risks of the company like user base risk, delivery partner retention, retaining restaurants, merchant & brand partners, dark store network, and technology.

Another domestic brokerage, MOFSL has outlined that has recommended that only 'high-risk takers' apply for the Swiggy IPO for the long term horizon.

Swiggy IPO: Key details; listing & allotment date, registrar, BRLMs

Here are the other details of the Swiggy IPO including the stock debut date, allotment date, and official registrar:

What is the allotment date for Swiggy IPO?

The allotment date of the Swiggy IPO is November 11, 2024, which indicates that applicants can check their status on November 12, 2024.

Who is the official registrar of Swiggy IPO?

An official registrar of Swiggy IPO is Link Intime India Pvt Ltd, and people can their status via this URL 'linkintime.co.in/initial_offer/public-issues.html'