Swiggy is set to make its stock market debut on Wednesday, November 13, following the recent completion of its share allotment on Monday. Swiggy’s initial public offering (IPO) garnered solid investor interest, closing with a subscription rate of 3.59 times by November 8.
- Retail Investors: This category saw moderate demand, with a 1.14 times subscription rate.
- *Qualified Institutional Buyers (QIBs):* Strong interest from institutional investors led to a 6.02 times subscription rate.
- *Non-Institutional Investors (NIIs):* Demand was lower in this category, with a subscription rate of 0.41 times.
Swiggy’s IPO opened with a price range of Rs 371 to Rs 390 per share, targeting a total raise of Rs 11,327 crore. This includes a fresh issue worth Rs 4,499 crore, along with an Offer for Sale (OFS) totaling Rs 6,828 crore.
**IPO Proceeds Allocation
Swiggy plans to utilize the IPO proceeds for several strategic purposes:
- Debt Repayment: Rs 137.41 crore will be allocated to repay outstanding debt for its subsidiary, Scootsy.
- Scootsy Expansion: Rs 982.40 crore is earmarked to scale Scootsy’s presence in quick commerce, including Rs 559.10 crore for setting up Dark Stores and Rs 423.30 crore for leasing and licensing.
- Tech and Infrastructure Upgrades: The company plans to invest Rs 586.20 crore in technology and cloud infrastructure improvements.
- Brand Marketing and Promotions: Approximately Rs 929.50 crore will go towards brand marketing.
- Corporate Growth: Additional funds will be reserved for acquisitions and other corporate initiatives.
Headquartered in Bengaluru, Swiggy is valued at approximately $11.3 billion (around Rs 95,000 crore) at the top of its IPO price range. The IPO was managed by leading investment banks, including Kotak Mahindra Capital, JP Morgan India, Citigroup Global Markets India, BofA Securities India, Jefferies India, ICICI Securities, and Avendus Capital.
