Swiggy's IPO subscribed 3.59 times on last day

Mumbai, Nov 8 (IANS) Online food delivery platform Swiggy's Rs 11,327 crore IPO was subscribed 3.59 times on the last day of bidding on Friday after a muted response from the investors in the initial two days of its public issue.

Swiggy IPO was subscribed 0.35 times and 0.12 times on the issue's second and first day, respectively. The reserve portion of qualified institutional buyers (QIBs) subscribed 6.02 times, the non-institutional investors (NIIs) portion saw 0.41 times subscription, the retail individual investors (RIIs) portion subscribed 1.14 times, and the employee portion subscription was 1.65 times.

The company has fixed a price band between Rs 371 and Rs 390. Swiggy shares will be listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on November 13, while the allotment of shares will take place on November 11.

According to the brokerages, Swiggy holds a number two position in India's food and grocery market behind Zomato. At present time, Swiggy holds nearly 34 per cent market share compared to Zomato's 58 per cent in food delivery. In the quick commerce space, Zomato's Blinkit holds a 40 to 45 per cent market share, while Swiggy's Instamart has 20-25 per cent.

In the past three fiscal years, Swiggy has consistently reported losses on a standalone and consolidated basis. In FY 2021-22, the total revenue was Rs 6,119.78 crore, with a net loss of Rs 3,628.90 crore. The following year, FY 2022-23, saw an increase in total revenue to Rs 8714.45 crore, but the net loss also increased to Rs 4,179.31 crore. In FY 2023-24, the total revenue rose further to Rs 11,634.35 crore, while the net loss was reduced to Rs 2,350.24 crore. In the June quarter of FY 2024-25, the company recorded a total revenue of Rs 3,310.11 crore and a net loss of Rs 611.01 crore.

--IANS

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