Day two of offer: Swiggy IPO receives 35% subscription

Swiggy’s initial public offering (IPO) received a 35% subscription on day two of the share sale. The initial share sale of the food delivery and quick-commerce major received bids for 5,56,98,652 shares against 16,01,09,703 shares on offer, as per NSE data.

The portion for Retail Individual Investors (RIIs) got subscribed 84% while the category for Quald Institutional Buyers (QIBs) fetched 28% subscriptions. The non-institutional investors part received a 14% subscription.

Swiggy said it has collected Rs 5,085 crore from anchor investors. The Bengaluru-based company’s shares are available for public subscription in the price range of Rs 371-390. The company is aiming to garner Rs 11,327 crore from the IPO, which has a fresh issue of shares worth Rs 4,499 crore, along with an offer for sale (OFS) of Rs 6,828 crore.

The valuation of Swiggy has been pegged at about USD 11.3 billion (about Rs 95,000 crore) at the upper price band. Going by the draft papers, the company plans to utilise proceeds from the fresh issue for investing in technology and cloud infrastructure; brand marketing and business promotion; and debt payment; and funds will also be allocated for inorganic growth and general corporate purposes.

Kotak Mahindra Capital Company Ltd, JP Morgan India Pvt Ltd, Citigroup Global Markets India Pvt Ltd, BofA Securities India Ltd, Jefferies India Pvt Ltd, ICICI Securities Ltd, and Avendus Capital Pvt Ltd are the book-running lead managers to the offer.

(Source: PTI)