Swiggy IPO GMP indicates muted listing gains amid negative market sentiment

Swiggy IPO comes amid a series of IPOs in the recent past including South Korean car maker Hyundai's mega Rs 28,000-crore issue.

Swiggy IPO GMP is indicating a tepid listing gain even though it has slightly improved compared to last week.

Negative sentiment across the markets may have weighed on its current GMP as the benchmark Sensex plummeted by nearly 942 points, closing at a three-month low, while the Nifty slipped below the 24,000 mark on Monday.

In the grey market, shares of Swiggy are indicating modest listing. According to Investorgain which track they grey market activities, Swiggy shares are currently commanding a grey market premium (GMP) of Rs 20-22, reflecting a premium of 5.64 percent in the unofficial market.

Earlier on November 1, the shares were commanding a GMP of Rs 18, a tepid gain of 4.62 percent.

The IPO also comes at a time, with concerns around urban demand slowdown and foreign investor outflows weighing on the domestic market.

The public issue is set to open for bidding from November 6 to November 8. Swiggy’s rapid expansion in quick commerce, which now accounts for 40 percent of its revenue, is expected to fuel its growth trajectory, mirroring trends seen in peer Zomato.

Swiggy IPO GMP indicates modest listing gains as Zomato's rival looks to raise over Rs 11,000 crore

According to Reuters which quoted sources, big investors including Norway's sovereign wealth fund Norges and Fidelity have placed bids worth more than $15 billion in Swiggy's IPO, 25 times the $605-million portion reserved for such investors.

The company has reduced its estimated valuation from the IPO to $11.3 billion, 25 percent less than an earlier estimation of $15 billion.

The company has fixed a price band of Rs 371-390 for the IPO.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.