Swiggy Stock Market Listing Today: Will Investors Make Money From Swiggy IPO? Check What Expert Says

New Delhi: Online food delivery platform Swiggy is all set to make its stock market debut on Wednesday after the company looks to raise Rs 11,327 crore through its IPO.

Swiggy IPO: Will Investors Make Money?

Shivani Nyati, Head of Wealth at Swastika Investmart Ltd said that a cautious approach needed for the Swiggy IPO. "Swiggy, a leading player in India's burgeoning food delivery and e-commerce sector, is set to make its stock market debut. While the IPO received a decent subscription of 3.59 times, the current grey market premium (GMP) of around ₹1 (0.26%) indicates a muted investor response. This subdued sentiment is likely influenced by the company's continued losses, despite steady revenue growth" Nyati said.

The IPO's valuation, while appearing reasonable based on certain metrics, presents a challenge due to negative earnings. Additionally, the current volatile market conditions may further impact the listing performance, she added.

"Given these factors, a cautious approach is recommended. Investors with a high-risk tolerance and a long-term perspective may consider the IPO, but it's essential to acknowledge the potential risks associated with the company's current financial position and the broader market uncertainties," Nyati said.

Swiggy IPO Subscription

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.