Swiggy shares likely to make muted listing debut as GMP falls below 1%

Swiggy IPO GMP is indicating a flat listing gain.

Swiggy's shares are expected to make a muted debut on November 13, as indicated by the latest trends in the grey market. The food delivery platform’s shares have seen a consistent decline in the grey market premium amid broader market concerns and apprehensions over the company’s path to profitability.

IPO Watch and Investor Gain which track they grey market premium activities, reveal that Swiggy shares are commanding a GMP in the range of Re 1-2 in the unofficial market, pointing to a marginal listing gain of 0.2-0.5 percent. This comes as a marked drop from November 1, when shares were commanding a GMP of Rs 18, translating to a moderate gain of 4.62 percent.

The IPO debut also coincides with a period of caution in the market, with factors such as urban demand slowdown and foreign investor outflows impacting investor sentiment.

Swiggy's IPO received full subscription on the final day of bidding, November 8, following a tepid response during the first two days of its Rs 11,327.43-crore offering.

The company’s shares remain open for public subscription in the price range of Rs 371 to Rs 390 until 5 pm today. At the top price band, Swiggy's valuation is projected at approximately Rs 95,000 crore. In contrast, competitor Zomato, which went public in July 2021, currently has a market valuation of Rs 2.25 lakh crore.

Swiggy holds the second-largest position in India’s food and grocery delivery market after Zomato. In food delivery, Swiggy controls 34 percent of the market, compared to Zomato’s 58 percent. In quick commerce, Zomato’s Blinkit commands around 40-45 percent of the market, while Swiggy’s Instamart holds an estimated 20-25 percent, according to brokerage reports.

(Reuters Inputs)

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