November 12, 2024
admin
Swiggy IPO Listing price estimate intends to prove Listing price-range and also long term potential of this scrip
Swiggy’s Rs. 11327 crore IPO has received not so hot response from different categories of the investors. The QIB portion is subscribed 6.02x and because of such oversubscription, the IPO could sail through. Whereas HNI portion is subscribed 0.41x and retail portion is subscribed 1.14x. Because such scene, selling pressure from HNI investors are expected on listing day
The oversubscription is 3.59x for the IPO which closed on 8th November 2024.
Swiggy is a new-age, consumer-first technology company offering users an easy-to-use convenience platform, accessible through a unified app – to browse, select, order and pay for food (“Food Delivery”), grocery and household items (“Instamart”), and have their orders delivered to their doorstep through its on-demand delivery partner network. Its platform can be used to make restaurant reservations (“Dineout”) and for events bookings (“SteppinOut”), avail product pick-up/ drop off services (“Genie”) and engage in other hyperlocal commerce (Swiggy Minis, among others) activities. Being among the first hyperlocal commerce platforms, Swiggy has successfully pioneered the industry in India, launching Food Delivery in 2014 and Quick Commerce in 2020, and due to the pioneering status of Swiggy, it is well-recognised as a leader in innovation in hyperlocal commerce and as a brand synonymous with the categories it is present in, according to the Redseer Report.
Not so strong fancy is witnessed for this IPO in the grey market since last 3 sessions. Compared to Swiggy, its rival company Zomato has shown good profitability during last 2 sessions. Many of the analysts and investors prefer investment in Zomato in comparison to Swiggy.
Now, the scrip will be listed on NSE & BSE on 13th November 2024. We expect the listing to be in the range of Rs. 380-385 for the shares issued at Rs. 390. Subsequent to the listing, many of the grey market traders fear that the scrip may witness selling pressure (just like Waaree) and may further decline on the listing day or subsequently.
However if you retain these shares for the long term, it has strong potential and may provide multibagger returns in the next 12-24 months.
