Swiggy shares to make market debut today: Does GMP signal a strong start?

Swiggy listing: Swiggy shares will make their market debut on the stock exchanges after having seen an overall subscription of 3.59 times.

In Short

• Swiggy shares to debut on Dalal Street with investors eyeing gains
• Price band was set at Rs 371-390, aiming to raise Rs 11,327 crore
• Experts suggest cautious approach due to losses, market conditions

Swiggy shares are all set to make their debut on the Dalal Street on Wednesday with investors eyeing a potential gain. The initial public offering (IPO) of Swiggy saw decent interest from investors with the allotment for the public issue being completed on Monday.

Swiggy IPO was subscribed 3.59 times overall by November 8. The retail category saw a subscription rate of 1.14 times, indicating moderate demand from individual investors. However, the qualified institutional buyer (QIB) segment drew stronger interest, with subscriptions reaching 6.02 times. The non-institutional investor (NII) category witnessed a lower subscription level of 0.41 times.

Swiigy IPO had a price band of Rs 371 to Rs 390, aiming to raise Rs 11,327 crore through the Initial Public Offering (IPO), comprising a fresh issue of shares worth Rs 4,499 crore and an Offer for Sale (OFS) component amounting to Rs 6,828 crore.

WHAT DOES LATEST GMP SUGGEST?

The highly anticipated Swiggy IPO was initially expected to perform well upon its public debut. However, the latest grey market premium (GMP) does not indicate a strong start for Swiggy shares on Dalal Street.

Initially, the IPO had a GMP of Rs 22 shortly before the bidding process began, but it has since declined.

As of 5:03 AM on November 13, 2024, the latest GMP for Swiggy IPO is Rs 1. With the price band set at Rs 390, the estimated listing price is around Rs 391 (the upper price band plus today’s GMP), signalling a modest potential gain of just 0.26% per share.

Shivani Nyati, Head of Wealth at Swastika Investmart Ltt said that while the IPO received a decent subscription of 3.59 times, the current grey market premium (GMP) of around Rs 1 (0.26%) indicates a muted investor response. This subdued sentiment is likely influenced by the company's continued losses, despite steady revenue growth.

"The IPO's valuation, while appearing reasonable based on certain metrics, presents a challenge due to negative earnings. Additionally, the current volatile market conditions may further impact the listing performance. Given these factors, a cautious approach is recommended. Investors with a high-risk tolerance and a long-term perspective may consider the IPO, but it's essential to acknowledge the potential risks associated with the company's current financial position and the broader market uncertainties," she said.

(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)