Swiggy IPO Allotment : Live Updates on Allotment Status, GMP, & expected listing price

Swiggy, the popular Indian food delivery and quick-commerce platform, launched its highly anticipated IPO in early November 2024, marking a major milestone in the Indian startup ecosystem. Swiggy offered its shares in a price range of INR 371 to 390 per share, seeking to raise around INR 11,327 crore. This included a fresh issue of INR 4,499 crore and an offer for sale from early investors like Accel India, Alpha Wave Ventures, Tencent, and others.

The IPO was met with considerable interest in the market. In the grey market, where IPO shares are traded informally before their official listing, Swiggy's shares commanded a premium of INR 18 to 25, suggesting an estimated listing price of around INR 408 to 415 per share. This premium indicated that investors were willing to pay about 4-6% above the upper price limit of INR 390, showing confidence in Swiggy's growth potential despite its recent financial losses.

Swiggy has positioned itself as a dominant player in the Indian market, competing with its primary rival, Zomato. Over the years, it has expanded its services beyond food delivery to include grocery and household deliveries through instamart, and even restaurant bookings and event ticketing through partnerships. This diversification is aimed at creating a "super app" ecosystem that could drive user loyalty and long-term growth.

However, Swiggy’s financial performance has raised some concerns. Despite significant revenue growth in the last fiscal year, Swiggy posted losses of INR 2,350 crore, which is lower than the previous year's losses but still substantial. This high burn rate for growth, coupled with the overall decline in tech stocks, has made some retail investors cautious, especially given the mixed performance of recent IPOs in India.

Swiggy's shares are scheduled to list on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on November 13, 2024. Market analysts and investors will be closely watching the stock's initial performance, which could set a precedent for other tech IPOs in India.