On Day 2 of the Swiggy IPO, subscription levels showed a gradual uptick but remained somewhat reserved across investor categories. The overall Swiggy IPO subscription status reached about 0.38 times, with retail investors contributing a significant 0.85 times subscription, highlighting their stronger confidence. Institutional investors, however, continued to adopt a cautious approach, with QIBs at 0.19 times and NIIs at 0.12 times. Employee subscriptions achieved full allotment, indicating internal optimism.
| Table Of Content |
|---|
| Swiggy IPO subscription status – Day 2 |
| Decoding Subscription status |
| Swiggy IPO Grey Market Premium (GMP) |
| Key Tips If You’re Considering Swiggy’s IPO |
| Top 7 FAQs on Swiggy IPO |
Swiggy IPO subscription status – Day 2
As of Day 2, Swiggy’s IPO saw moderate interest, reaching a subscription level of around 0.38 times overall. Retail investors led the way with a relatively strong 0.85 times subscription, suggesting that small investors are more optimistic about Swiggy’s market potential and long-term growth. Institutional investors, however, have shown a more cautious approach so far, with QIBs (Qualified Institutional Buyers) subscribing to about 0.19 times and NIIs (Non-Institutional Investors) at 0.12 times​.
Interestingly, Swiggy’s employees fully subscribed to the portion allocated to them, likely driven by a discounted price offered for employee bids, showing internal confidence in the company’s future. Though early numbers reflect a mixed sentiment, IPOs often see heightened activity on the final day as larger institutional bids typically come in closer to the close.
Swiggy raised ₹5,085 crore from anchor investors prior to the IPO launch, providing a strong foundation from reputable investors, which may positively influence final-day participation as well.
Decoding Swiggy Subscription status
Day 1’s response suggests mixed feelings:
- Strong Retail Interest: With retail investors hitting over half their subscription target on the first day, there’s clear interest in Swiggy from everyday investors. This could be due to Swiggy’s brand reputation and its position in India’s food and delivery market.
- Waiting on QIBs: The institutional investors’ (QIB) lack of early bids might look cautious but could also just be their usual tactic of waiting for the final day to finalize bids. Keep an eye on QIB participation over the next two days to get a better sense of Swiggy’s long-term appeal.
Swiggy IPO Grey Market Premium (GMP)
The Grey Market Premium (GMP) for Swiggy has been relatively stable but not overly high, showing moderate demand:
- 5 Days Ago: ₹15-20
- 3 Days Ago: ₹10-15
- Yesterday: ₹10-12
- Today (Day 1): ₹10
The GMP is an informal indicator of demand in the secondary market. While the GMP for Swiggy isn’t skyrocketing, it’s stable enough to reflect consistent interest. Keep in mind, though, that GMP is not always a perfect predictor of stock performance once it lists​.
Key Tips If You’re Considering Swiggy’s IPO
Thinking about investing in Swiggy? Here are some steps to keep in mind:
- Watch Institutional Participation: As QIBs often bring in significant demand, their bidding behavior, especially on the last day, is a strong signal. A surge in QIB interest could boost confidence in Swiggy’s potential.
- Track GMP Trends Closely: If the GMP shows a rise by Day 3, it may hint at increasing demand. However, always take GMP with a grain of caution as it’s not an official metric.
- Evaluate Swiggy’s Financial Health: Swiggy has recorded impressive revenue growth, but its profitability remains a challenge. If you’re a long-term investor, look at Swiggy’s operational model and potential for expanding into new services.
- Consider Analyst Ratings: Many analysts suggest Swiggy might have good long-term potential, though some are wary due to the high valuation and ongoing losses. Weigh both perspectives carefully.
- Check Your Investment Horizon: If you’re looking for a quick profit, Swiggy may not fit the bill given its high valuation. Long-term investors, however, might see potential as Swiggy expands further into the digital service space.
In Summary
Swiggy’s IPO has seen a warm welcome from retail investors on Day 1, while institutional investors are likely to jump in closer to the end of the subscription period. Day 2 and Day 3 will be telling, especially if QIB interest picks up. If you’re interested in Swiggy’s IPO, keep an eye on these trends, especially QIB participation and GMP fluctuations, to help guide your decision.
Disclaimer:
This article is for informational purposes only and does not constitute financial advice. Investing in IPOs and the stock market involves risk, including potential loss of capital. Please consult a financial advisor to assess suitability based on your financial situation and risk tolerance.
Top 7 FAQs on Swiggy IPO
- What is Swiggy IPO’s price range?
- The IPO is priced between ₹371-390 per share.
- When does the IPO close?
- The subscription period ends on November 8, 2024.
- When will allotment be announced?
- Allotment is expected on November 11, 2024.
- When does Swiggy plan to list?
- Swiggy shares are likely to list on November 13, 2024, on both the BSE and NSE.
- What is the current GMP?
- As of Day 1, the GMP is around ₹10-12, showing moderate demand.
- What is allocated to retail investors?
- Retail investors have a 15% quota in this IPO.
- Is Swiggy IPO suitable for short-term gains?
- Due to its high valuation and ongoing profitability challenges, many analysts suggest Swiggy might be better for long-term investors rather than those seeking quick gains​.