Swiggy IPO day 2 update: 24% subscription, grey market premium increases by 2%

Swiggy's much-anticipated ₹11,327.43 crore IPO opened on November 6, 2024, but as of Thursday afternoon, the subscription levels have been modest. The Swiggy IPO has garnered only a 24% subscription rate, as reported by the National Stock Exchange (NSE). 

While some investors may see this as an opportunity to cautiously invest in IPO, the breakdown of subscriptions shows a variance in interest across investor categories. Retail investors have subscribed 0.73 times, Non-Institutional Investors (NIIs) 0.17 times, and Qualified Institutional Buyers (QIBs) just 0.14 times. However, employees have shown greater confidence in fully subscribing to their reserved quota.

Grey market premium & pricing details

Despite the lukewarm IPO subscription, Swiggy's shares continue to trade at a premium in the grey market, indicating underlying interest. As of the latest data, the grey market premium (GMP) is around ₹9.50, equating to a 2.44% premium over the IPO's upper price band of ₹390.

This GMP can be an influential factor for those looking to invest in IPOs, as it reflects a secondary demand ahead of the stock's official listing. The Swiggy IPO's price band ranges from ₹371 to ₹390, with a minimum bid size of 38 shares.

The IPO includes both fresh issue shares (115,358,974 shares) and an offer for sale (175,087,863 shares), giving potential investors various ways to participate. The last day to invest in the IPO is November 8, 2024.

Listing timeline and allotment details

Swiggy's IPO allotment is scheduled to be finalized on November 11, with shares expected to be credited to investors' demat accounts by November 12. Swiggy will debut on the BSE and NSE on November 13, a critical date for investors eager to see the company's market reception.

Key takeaways

• Subdued demand: Swiggy IPO has so far seen a muted response, with only 24% subscription as of November 7, 2024.
• Grey market premium: Despite low subscription rates, Swiggy's shares command a grey market premium of ₹9.50, suggesting some investor interest remains.
• Investment deadline: Investors have until November 8, 2024, to subscribe, with shares set to be listed on November 13 on both the BSE and NSE.

For those aiming to invest in IPOs, Swiggy's offering might be an intriguing choice, as its unique position in the food delivery industry could yield significant long-term gains, depending on market dynamics.