Food and grocery supply agency Swiggy’s $1.4 billion preliminary public providing (Stock Launch) was totally subscribed on Friday, as institutional traders rushed in with orders on the ultimate day of India’s second-largest share sale this yr.
The portion reserved for institutional traders was subscribed 131 per cent, whereas the shares earmarked for retail traders have been 97 per cent subscribed.
Swiggy holds a strong No. 2 place in India’s meals and grocery market behind Zomato. In meals supply, it has 34 per cent of the market in comparison with Zomato’s 58 per cent, whereas in fast commerce, Zomato’s Blinkit has an estimated 40-45 per cent and Swiggy’s Instamart has 20-25 per cent, in accordance with brokerage estimates.
Analysts count on the loss-making firm to make a muted debut on inventory exchanges subsequent week, weighed down by broader market weak spot and considerations that profitability could also be a while away.
“Institutional over-subscription on the third day … has happened as these investors generally subscribe keeping a long-term view – which looks strong for Swiggy given the duopolistic market in the booming food delivery and quick-commerce sector in India,” stated Prashanth Tapse, senior vice chairman of analysis at Mehta Equities.
“But listing gains are not expected, especially considering the subdued sentiment in the secondary markets.”
While Zomato posted a fiscal 2024 revenue after a loss the earlier yr, Swiggy is but to show worthwhile. It posted a internet lack of 23.5 billion rupees within the yr ended March 30, 2024, about 44 per cent smaller than a yr earlier.
