What is the state of Swiggy's GMP?
The IPO of food delivery aggregator and quick commerce platform swiggy has ended successfully. It has not been able to do much wonders in the primary market on the basis of subscription and its IPO closed today with 3.59 times subscription. The response to this IPO was lukewarm till the second day, but today on the last day, it closed with 3.59 percent subscription after filling the retail and QIB quota completely. Swiggy's IPO was a public issue with a book built value of Rs 11,300 crore (Rs 11,327.43 crore). This IPO is a combination of a fresh issue of 11.54 crore shares worth Rs 4499 crore and an offer for sale of 17.51 crore shares worth Rs 6,828.43 crore.
Meanwhile the price band of Swiggy's IPO was from Rs 371 to Rs 390. On the last day of its public issue, its retail and QIB quota has been fully filled but its non-institutional investors' quota has not been fully subscribed. At the upper price band of Swiggy's IPO, Swiggy's valuation is Rs 95,000 crore. It is obviously compared with its biggest competitor Zomato. This company became a public company by bringing IPO in July 2021 and its current market valuation is Rs 2.25 lakh crore.
Moreover if we look at the gray market premium of swiggy, it is running at a GMP of Rs 1-2 and based on this, its listing on the exchanges can be at 0.2-0.5 percent. In the food delivery and grocery market, swiggy has a total market share of 34 percent and is behind Zomato's 58 percent market share. In the field of quick commerce, zomato Blinkit has a 40-45 percent share and swiggy Instamart has a 20-25 percent share.