Swiggy’s IPO has not received good response from investors. Till the last day, Swiggy’s IPO was subscribed 3.58 times. While retail investors have subscribed this IPO 1.10 times. While QIB has been subscribed 6.02 times and high net worth investors have subscribed this IPO by 40 percent. Overall, Swiggy’s IPO has not received as good response from investors as expected. There are many reasons behind this, but we will tell you three main reasons.
Swiggy’s IPO opened on November 6 and closed on November 8. Whose total size is 11,327.43 million rupees. 11.54 million shares have been sold through new issuance. While 17.51 million shares were placed through an offer for sale. The allotment of its shares will take place on November 11 and the listing of Swiggy shares will take place on BSE and NSE on November 13.
I had to invest ₹14,820 for one lot
Talking about the price band of Swiggy’s IPO, it has been set between ₹371 and ₹390 per share. 38 shares have been placed in one batch of Swiggy IPO, in which at least retail investors will have to invest Rs 14,820. 750,000 shares were reserved for Swiggy employees and they were offered a discount of Rs 25 for each share.
Only 1 rupee GMP
Talking about GMP, i.e. the gray market premium of Swiggy’s IPO, it is just Rs 1 per share. Which was 2 rupees until yesterday. That means GMP indicates a flat quote.
Why don’t investors like this IPO?
1. The company has a lot of debt: The company has a lot of debt, so investors are not excited about the growth.
2. Loss-making company: The Swiggy company has not yet been able to taste the benefits. The company continually suffers losses. However, due to a one-time profit, the company had become profitable once in the past.
3. Zomato Competition: Zomato has a bigger business than Swiggy and the company is continuously making profits. Zomato’s business has improved rapidly since it bought Blinkit.
Zomato got a strong response
Zomato’s initial public offering occurred on July 14, 2021 and closed on July 16, 2021. The listing of its shares took place on July 23, 2021. During the IPO, the price band of this IPO was of Rs 76 and the listing was made at Rs 116. At the same time, investors had largely subscribed to this IPO. A total of 38.25 times was subscribed, of which retail investors subscribed 7.45 times, QIBs 51.79 times and HNIs 32.96 times.
(Note: Before investing in any IPO, definitely seek the help of a financial advisor.)
