Swiggy IPO Shares Trade at Nearly 4% Premium in Grey Market Ahead of Listing

Food delivery giant Swiggy is set to launch its initial public offering (IPO) and make its D-street debut on Wednesday. The company’s IPO, backed by SoftBank, will be open for public subscription from November 6 to November 8. Ahead of the IPO, on Monday the shares of the company were trading at a grey market premium (GMP) of Rs 405, commanding a premium of nearly 3.85 per cent. Grey market is an unofficial market for the pre-IPO and no regulatory bodies are involved at this phase. 

The price band of the IPO is set around Rs 371 to Rs 390 per share and the company aims to raise more than Rs 11,000 crore from the public issue. The giant plans to use the amount to fund investment in the material subsidiary, Scootsy. It is also eyeing to utilise the funds towards technology and cloud infrastructure, brand marketing and business promotion expenses for increasing brand awareness and visibility of its platform.  

Kotak Mahindra Capital Company, Citigroup Global Markets India, Jefferies India, Avendus Capital, JP Morgan India, BofA Securities and ICICI Securities are the book-running lead managers of the Swiggy IPO. Link Intime India Private Ltd is the IPO registrar. 

The food delivery giant will raise the funds by offering a combination of a fresh issue of 11.54 crore equity shares aggregating to Rs 4,499 crore and an offer for sale of 17.51 crore shares worth Rs 6,828.43 crore. The company has reserved around 75 per cent of the shares in Swiggy IPO for qualified institutional bidders (QIB), 15 per cent is set aside for non-institutional investors and 10 per cent is kept for retail investors. The company has reserved up to 750,000 shares for its employees. Moreover, it is offering the shares to employees at a discount of Rs 25 on the issue price. 

The investors selling shares in the offer for sale category include Accel India IV (Mauritius) Ltd, Apoletto Asia Ltd, Alpha Wave Ventures, LP, Coatue PE Asia XI LLC, DST EuroAsia V B. V., Elevation Capital V Ltd, Inspired Elite Investments Ltd, MIH India Food Holdings B.V., Norwest Venture Partners VII-A Mauritius and Tencent Cloud Europe B.V. 

Also Read: https://www.outlookbusiness.com/start-up/explainers/what-swiggys-ipo-filing-reveals-about-its-bid-to-take-on-zomato