With an oversubscription of 3.59 times its initial issue, food delivery aggregator Swiggy became the biggest consumer-tech IPO in Asia year-to-date. It also cemented its place as one of the top 10 largest IPOs in the country, led by October’s Hyundai India subscription call.
Swiggy received robust backing from institutional investors, with over 6 times subscribed by QIBs. Despite foreign investors pulling more than USD 11 billion from Indian markets in October, Swiggy received at least USD 1.3 billion in bids from FPIs.
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However, given the trend of IPOs in India recently, the retail part of the subscription received a lacklustre response, with just 1.14 times booking. The Bengaluru-based online food and grocery delivery firm opened its IPO from November 6 to November 8, with an initial price band of Rs ₹371 to Rs 390 per share.
On its tenth year since operations began, Swiggy now boats a little over 11 crore customers on its platforms. Despite around 40 per cent CAGR from fiscal 2022 to 2024, Swiggy still records a negative cash flow from operations.
With the allotment to be finalised on November 11, the Swiggy stock will be listed on the Indian exchanges on Wednesday, November 13.
The proceeds from the Swiggy IPO are expected to be invested in the Bangalore-based company’s arm, Scootsy, in a bid to expand its dark store network for its growing Q-commerce business, technology and cloud infrastructure, and brand marketing. Apart from new dark stores, Swiggy plans to open larger stores to offer more products and reduce average delivery times. Swiggy will also look for acquisitions through fundraising.
As of date, Zomato is the only other food aggregator listed in the Indian markets. Its Q-commerce arm, Blinkit, directly competes with Swiggy’s Instamart.
