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Unlisted shares of Swiggy Ltd continue to trade at the same price in the grey market as its issue price, signalling a subdued listing on Wednesday.
Swiggy IPO Listing.
Swiggy IPO Listing: As the IPO allotment status has been finalised, online food delivery platform Swiggy is set to make its market debut on Wednesday. According to market observers, the Swiggy IPO is likely to witness a flat or negative listing today as its GMP have reduced to zero amid bearish overall market sentiments.
Investors can check their allotment status online on the websites of BSE and NSE as well as on registrar Link Intime India’s portal.
The initial public offering, which was opened for public subscription between November 6 and November 8, received a 3.59 times subscription garnering bids for 57.53 crore shares as against the 16.01 crore shares on offer. The price band of the Swiggy IPO was fixed at Rs 371 and Rs 390 apiece.
The shares of Swiggy are scheduled to be listed on both BSE and NSE on November 13.
Swiggy IPO GMP Today
According to market observers, unlisted shares of Swiggy Ltd continue to trade at the same price in the grey market as its issue price. The zero grey market premium or GMP means the grey market is expecting a subdued listing on Wednesday.
The GMP is based on market sentiments and keeps changing. ‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
The Hyundai Motor India IPO and the Afcons Infrastructure IPO recently were also listed on exchanges at discounts.
Swiggy IPO: What Should Investors Do Post-Listing?
Shivani Nyati, head of wealth at Swastika Investmart, said this subdued investor sentiment as indicated by its low GMP is likely influenced by the company’s continued losses, despite steady revenue growth.
“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,” he 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, she said.
Prashanth Tapse, senior vice-president (research) and research analyst at
Mehta Equities, also recommended risky investors to hold Swiggy’s shares for the long term.
“For allotted investors, one should not expect any kind of listing gains. Hence, only risky investors should consider the company to hold for the long term, despite knowing short-term volatility and competitive pressures in the sector. For non-allottees, we advise to wait and watch for the price to settle and revisit the space with better discounted opportunity,” Tapse added.
Despite being the second-largest e-commerce and food delivery player, it received a sluggish response from overall investors. While on a consolidated basis, the overall subscription figures look good, but Day-3 Qualified Institutional Buyers (QIB) investors supported Swingy ipo helping it to successfully sell out, which looks similar trend to Hyundai Motors IPO, he said.
