Swiggy IPO gets oversubscribed led by QIB bids

Foodtech giant Swiggy IPO was oversubscribed 1.07 times by Friday afternoon, the third day of its book-building process. 

Qualified Institutional buyers (QIBs), which typically invest on the last day to gauge overall market demand, came through for the company's IPO, with the portion oversubscribed 1.52 times.

According to the BSE, non-institutional investors(NIIS) made bids for 22% of the allocated issue size, while retail investors subscribed to 97% of the portion.

The Sriharsha Majety-led company saw the quota reserved for employees being subscribed 1.38 times.

On the first and second days of the book-building process, Swiggy IPO was subscribed only 35% and 12%, respectively.

Swiggy has secured nearly Rs 5,085 crore (about $605 million) from anchor investors, including the life insurance and mutual fund divisions of HDFC, ICICI, and SBI. The anchor book attracted participation from over 75 major domestic mutual funds, along with international investors such as Astrone Capital, Fidelity, and BlackRock.

The Bengaluru-headquartered company, which competes with publicly listed Zomato and General Catalyst-backed Zepto, has set its IPO price band at Rs 371 - Rs 390 per equity share.

Swiggy's IPO consists of a fresh issue of 11.54 crore equity shares along with an offer for sale of 17.51 crore equity shares by existing stakeholders.

Its early backers, including Accel and Elevation Capital, are set to see over 3300% gains on their investment on listing. However, US-based asset management firm Prosus is set to take the biggest cheque home, as it looks at a gain of 197% on its investment.

Swiggy is expected to start trading on domestic bourses on Wednesday, November 13.

While not a like-for-like comparison, Zomato's IPO in 2021 was subscribed 38.25 times on the final day, mainly driven by bids from qualified institutional buyers (QIBs) and non-institutional investors.

(The copy was updated with additional details)