Institutional subscription at 131
Retail portion subscribed 97
Analysts see muted listing gains next week
Nov 8 Reuters Food and grocery delivery firm Swiggy39;s 1.4 billion initial public offering was fully subscribed on Friday, as institutional investors rushed in with orders on the final day of India39;s secondlargest share sale this year.
The portion reserved for institutional investors was subscribed 131, while the shares earmarked for retail investors were 97 subscribed.
Swiggy holds a solid No. 2 position in India39;s food and grocery market behind Zomato. In food delivery, it has 34 of the market compared to Zomato39;s 58, while in quick commerce, Zomato39;s Blinkit has an estimated 4045 and Swiggy39;s Instamart has 2025, according to brokerage estimates.
Analysts expect the lossmaking company to make a muted debut on stock exchanges next week, weighed down by broader market weakness and concerns that profitability may be some time away.
Institutional oversubscription on the third day … has happened as these investors generally subscribe keeping a longterm view which looks strong for Swiggy given the duopolistic market in the booming food delivery and quickcommerce sector in India, said Prashanth Tapse, senior vice president of research at Mehta Equities.
But listing gains are not expected, especially considering the subdued sentiment in the secondary markets.
While Zomato posted a fiscal 2024 profit after a loss the previous year, Swiggy is yet to…