The Swiggy IPO, with an issue price set between ₹371-390, was primarily driven by Qualified Institutional Buyers (QIBs) who subscribed to their portion 6.02 times over, making up most of the interest in the IPO. However IPO GMP is only 2 ruppes, Accordingly Swiggy IPO Listing Gain Prediction is suggesting very negligible listing gains.
| Table Of Content |
|---|
| Swiggy IPO GMP Trends |
| Swiggy IPO Listing Gain Prediction |
| Swiggy IPO Subscription Data |
| Swiggy IPO Financial Highlights |
| Swiggy IPO Hold Or Sell? Listing Day Stratergy |
| Top FAQs |
Swiggy IPO GMP Trends
The GMP for Swiggy started at a peak of about ₹9.50 but has shown a downward trend, currently around ₹2. A falling GMP can signal tempered enthusiasm among potential buyers, possibly due to Swiggy’s ongoing financial losses and competitive market. While early GMP figures hinted at a premium listing, the recent dip suggests a more cautious approach from retail investors and small stakeholders
Decoding GMP Trend
In IPOs, GMP serves as a real-time indicator of potential listing gains, especially relevant for investors looking to trade early. Swiggy’s GMP, however, has seen enough decline to signal that investors are taking a more measured approach. Analysts believe the volatile GMP reflects concerns over Swiggy’s profitability and the stiff competition it faces in both food delivery and grocery delivery spaces.
Swiggy IPO Listing Gain Prediction
Given the current GMP of around ₹2, Swiggy’s shares are expected to open near the issue price, possibly between ₹391-392. This range implies very limited listing gains, a stark contrast to the higher premiums expected initially. Investors anticipating large opening profits might need to reassess; instead, a stable listing without significant upswing may be more likely.
Swiggy IPO Subscription Data
Swiggy’s IPO subscription data highlights significant demand from institutional buyers, which suggests that large investors view Swiggy as a promising long-term growth story. In contrast, individual and non-institutional investors were more cautious. This discrepancy often reflects risk sensitivity, with smaller investors holding back due to uncertainties about Swiggy’s financial track and competitive pressures.
Institutional Buyers (QIBs) who subscribed to their portion 6.02 times over, making up most of the interest in the IPO. In contrast, retail investors showed relatively moderate interest, subscribing at a rate of only 1.14 times.
Swiggy IPO Financial Highlights Over the Last 3 Years
Swiggy’s growth trajectory is evident in its revenue numbers, but it continues to operate at a loss a key factor influencing investor sentiment. Unlike competitor Zomato, which recently achieved profitability, Swiggy is still working toward a positive bottom line. For those considering a long-term hold, Swiggy’s expansion into areas like grocery delivery and hyperlocal services could present significant growth potential, albeit with considerable operational costs.
| Financial Year | Revenue (₹ crores) | Net Loss (₹ crores) | Net Worth (₹ crores) |
|---|---|---|---|
| FY 2022 | 6,119.77 | 3,628.89 | 12,266.91 |
| FY 2023 | 8,714.45 | 4,179.30 | 9,056.61 |
| FY 2024 (June) | 11,634.34 | 611 | 7,444.99 |
Swiggy IPO Hold Or Sell? Listing Day Stratergy
- For Short-term Investors: Investors focused on short-term gains may need to watch closely on listing day. If the listing opens flat or slightly above the issue price, a quick sale might be advisable to lock in minimal gains. However, if there is a significant drop below the issue price, short-term traders may choose to hold and wait for a recovery.
- For Long-term Investors: Those considering a longer horizon might view Swiggy’s competitive positioning and product diversification as reasons to hold, despite current losses. However, it’s crucial to recognize the challenges Swiggy faces from well-funded competitors in both food delivery and grocery.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult a licensed financial advisor before making investment decisions, as all investments carry risks.
Swiggy IPO Listing Day Timeline
Swiggy shares are expected to list on the NSE and BSE on November 13, 2024, with trading set to begin around 10:00 AM. Investors keen on tracking opening prices should be prepared for early movements.
Top FAQs
- What is the Swiggy IPO issue price? The issue price was set between ₹371 and ₹390 per share.
- What can investors expect from the listing price? Current GMP suggests a listing price close to the issue price, around ₹391-392.
- Should I Swiggy ipo hold or sell on listing day? For short-term gains, a sale might be wise if the listing price shows minimal premium. Long-term holders might stay invested if they believe in Swiggy’s growth story.
- What was the overall subscription rate? The IPO was subscribed 3.59 times, driven mainly by institutional investors.
- What factors influenced Swiggy’s fluctuating GMP? Swiggy’s competitive landscape, profitability concerns, and market dynamics may have affected GMP trends.