Swiggy Ltd.’s $1.3 billion initial public offering (IPO) closed successfully on Friday, with demand outstripping supply by more than three times. A late surge in interest from major investors underscored a strong appetite for the Indian food-delivery giant’s shares, one of the few billion-dollar-plus listings in India this year.
The IPO was well-received by institutional investors, with bids for six times the shares allocated for foreign and domestic institutional investors. The retail segment also saw full subscription, marking strong participation across the board.
For many analysts, Swiggy’s IPO served as a key indicator of market appetite for large-scale share sales, particularly following a lackluster reception to Hyundai Motor India Ltd.’s $3.3 billion IPO. The offering also faced headwinds from global funds, which have recently been net sellers of Indian shares, citing high valuations and concerns over slowing earnings growth.
Swiggy’s listing, backed by Prosus NV, includes a fresh issue of shares totaling approximately 45 billion rupees ($535 million), along with a secondary sale of 175.1 million shares from existing shareholders such as Accel and Tencent Cloud Europe BV. The company aims to debut on the stock exchange by November 13.
The IPO saw Swiggy allocate 130.4 million shares worth 50.9 billion rupees ($605 million) to anchor investors at 390 rupees per share, the upper end of its price band. Notable anchor investors included Fidelity International and Invesco, reflecting robust demand from prominent global funds.
Despite strong institutional demand, Swiggy’s continued financial losses raised some concerns among retail investors. The company reported a loss of 6.1 billion rupees ($73 million) for the quarter ending June, while its main competitor, Zomato, achieved profitability in the same period, having listed publicly in 2021.
With Swiggy’s IPO surpassing expectations, the listing is anticipated to be a key test of investor sentiment in India’s IPO market as it prepares to debut on November 13.
