Swiggy IPO subscribed 3.59 times led by QIBs

Following a tepid start, food-tech unicorn Swiggy’s Rs 11,327-crore initial public offer got fully subscribed on the final day of the share sale on Friday and ended with 3.59 times subscription, largely thanks to qualified institutional buyers (QIBs).

It received bids for 575.3 million equity shares against 160 million shares on offer, according to NSE data.

Among the four segments of investors, the QIB portion saw the highest subscription at 6.02 times, receiving bids for 523 million shares, against 86.9 million shares reserved for this portion. At the upper end of the price band, the QIB portion received bids worth Rs 20,400 crore.

Also Read ABB India shares drop over 5% on cautious outlook for new order wins in FY25 NSE reports 57 per cent jump in September quarter profit to Rs 3,137 crore Sun Pharma shares slip over 3% after US court’s ruling on LEQSELVI launch Public investors turn angels for startups

Also ReadSagility India allotment on November 08; Here’s a step-by-step guide to check status

Of the 523 million share bids received for the QIB portion, foreign institutional investors bid for 288.8 million shares, while domestic institutional investors and mutual funds together bid for 203.5 million shares. Apart from this, the retail portion was subscribed 1.14 times, the portion for non-institutional investors was subscribed 41% and the employee portion was subscribed 1.65 times.

After Hyundai Motor India’s Rs 27,870 crore IPO saw a lukewarm response and fell 7% on debut recently, investors seem to be cautious about large-scale IPOs. Further, tepid corporate earnings seem to have weighed on market sentiments.

Most analysts are of the opinion that Swiggy’s IPO is overly priced with the price band of Rs 371-390 per share, particularly compared to its closest rival Zomato, which is currently trading around Rs 250 apiece and is profitable, unlike Swiggy.

However, Zomato’s issue size was smaller at Rs 9,375 crore, compared to Swiggy’s Rs 11,327 crore.

“We suggested people not apply for the IPO because it was decently expensive and there was not much left on the table. Typically, as an IPO investor, I’d expect about 20-25% discount to their valuation, especially for large issues like this,” said Ambareesh Baliga, an independent market analyst.

 » Read More

Related Articles

JB Pharma is riding the CDMO Opportunity. Jefferies reiterates buy…

Jefferies has maintained a Buy on JB Pharma with a revised target price of Rs 2,310. The stock currently trades at Rs 1,714/share implying an 34% upside. This new target price is just a shade lower than the previous target price of Rs 2,340. According to Jefferies, an international brokerage house, the growth drivers are

Two banking stocks to watch ahead of the RBI Policy

By Kiran Jani Bank Nifty reached its all-time high of 54,467 in September 2024. Following this peak, the index experienced a correction, dipping to 47,844 in January 2025—a decline of 7.29%. Despite this pullback, Kotak Bank and ICICI Bank showed relative resilience, delivering returns of 1.61% and -4.20%, respectively, during the same period. Source: Investing.com

New Tax Regime: These deductions, exemptions still available for you

The Indian government introduced a new tax regime in 2020, offering lower tax rates while removing several exemptions and deductions available under the old system. Initially optional, this regime became the default in 2023, requiring taxpayers to opt out if they wished to continue under the old structure. Despite the removal of many benefits, certain

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

0FansLike
0FollowersFollow
0SubscribersSubscribe
- Advertisement -

Latest Articles

JB Pharma is riding the CDMO Opportunity. Jefferies reiterates buy…

Jefferies has maintained a Buy on JB Pharma with a revised target price of Rs 2,310. The stock currently trades at Rs 1,714/share implying an 34% upside. This new target price is just a shade lower than the previous target price of Rs 2,340. According to Jefferies, an international brokerage house, the growth drivers are

Two banking stocks to watch ahead of the RBI Policy

By Kiran Jani Bank Nifty reached its all-time high of 54,467 in September 2024. Following this peak, the index experienced a correction, dipping to 47,844 in January 2025—a decline of 7.29%. Despite this pullback, Kotak Bank and ICICI Bank showed relative resilience, delivering returns of 1.61% and -4.20%, respectively, during the same period. Source: Investing.com

New Tax Regime: These deductions, exemptions still available for you

The Indian government introduced a new tax regime in 2020, offering lower tax rates while removing several exemptions and deductions available under the old system. Initially optional, this regime became the default in 2023, requiring taxpayers to opt out if they wished to continue under the old structure. Despite the removal of many benefits, certain

Range bound session: Nifty ends above 23,600, Sensex holds 78,000 led by Adani Ports, Infosys

The stock markets faced a downturn on Thursday, with major indices closing in the red. The BSE Sensex dropped by 213.12 points or 0.27%, ending the day at 78,058.16, while the NSE Nifty 50 saw a decline of 70.15 points, down by 0.3%, and closed at 23,626.15. The Nifty Bank index also ended the day

IT stocks stable as Cognizant raises annual and quarterly revenue guidance

Shares of Indian IT companies are in the spotlight today after the Nasdaq-listed IT services major Cognizant Technology Solutions, reported its Q4 results that exceeded Wall Street expectations. The Nifty IT Index as well as individual tech counters like Infosys, Wipro, Tech Mahindra and HCL Tech are all in the green even as the markets