Swiggy IPO Sees Strong Anchor Investor Interest with 44.88% Subscribed

Swiggy IPO saw a significant anchor allocation response, with 44.88% of the total IPO size subscribed by anchor investors. Out of 290,494,914 shares on offer, anchors picked up 130,385,211 shares, demonstrating strong market confidence. The anchor allocation details were reported to the stock exchanges on 5th November 2024, just ahead of the IPO opening on 6th November 2024.

The book-built issue of ₹11,327.43 crores comprises a fresh issue of 115,358,974 shares aggregating to ₹4,499.00 crores and an offer for sale of 175,087,863 shares aggregating to ₹6,828.43 crores. The price band is set at ₹371 to ₹390 per share, with a face value of ₹1 per share. This includes a share premium of ₹389 per share at the upper end of the price band. The issue includes a reservation of up to 750,000 shares for employees offered at a discount of ₹25 to the issue price.

The anchor allocation process, which took place on 5th November 2024, saw strong participation from institutional investors. The entire anchor allocation was made at the upper end of the price band, ₹390 per share, indicating robust demand and confidence in the company's prospects.

After the anchor allocation, the overall allocation of the IPO looks as follows:

Notably, the 130,385,211 shares allocated to anchor investors were reduced from the original Qualified Institutional Buyers (QIB) quota. The QIB quota has been adjusted to ensure that the overall allocation to QIBs, including the anchor portion, remains within regulatory limits.

The lock-in period for anchor investors is an important aspect of the allocation. For the Swiggy IPO, the lock-in details are as follows:

• Lock-in Period (50% Shares): 11th December 2024
• Lock-in Period (Remaining Shares): 9th February 2025

This lock-in period ensures that anchor investors maintain their investments for a specified duration, stabilising the stock price after listing.

Also read Swiggy IPO 2024: Key Details, Growth Prospects

Anchor Investors in Swiggy IPO

Anchor investors are typically large institutional investors allotted shares in an IPO before it opens to the public. The anchor allocation process is a crucial part of the IPO, as it helps in price discovery and builds confidence among retail investors. The strong response from anchor investors often sets a positive tone for the public issue and can influence the overall subscription levels.

On 5th November 2024, Swiggy IPO completed the bidding for its anchor allocation. There was a robust response as the anchor investors participated in the book-building process. A total of 130,385,211 shares were allotted to 151 anchor investors. The allocation was done at the upper IPO price band of ₹390 per share, resulting in an overall anchor allocation of ₹5,085.02 crore. The anchors have already absorbed 44.88% of the total issue size of ₹11,327.43 crore, indicating strong institutional demand.

Out of the total allocation of 130,385,211 Equity Shares to the Anchor Investors, 53,007,554 Equity Shares (i.e., 40.65% of the total allocation) were allocated to 19 domestic mutual funds through 69 schemes.

Key IPO Details:

• IPO Size: ₹11,327.43 crores 
• Shares Allocated to Anchors: 130,385,211 
• Anchor Subscription Percentage: 44.88% 
• Listing Date: November 13, 2024 
• IPO Opening Date: November 6, 2024

About Swiggy Limited and How to apply for Swiggy IPO

Founded in 2014, Swiggy Limited provides its users with an easy-to-use platform that they can access via a single app to search, select, order, and pay for food (Food Delivery), grocery and household goods (Instamart) and have orders delivered to their homes via an on-demand delivery partner network.

The company has five business units: Food Delivery; Out-of-home consumption, which includes restaurant visits and events; Quick Commerce for the delivery of grocery and household items on demand; Supply chain and distribution: business-to-business ("B2B") deliveries, warehousing, logistics and distribution for wholesalers and retailers; and Platform innovation for new initiatives and offerings such as Swiggy Genie and Swiggy Minis.

As of 30th June 2024, Swiggy's Instamart operated a large network of 557 Active Dark Stores across 32 cities in India, and as of 10th September 2024, Instamart operated a network of 605 Active Dark Stores across 43 cities in India. The company's platform enables restaurant reservations (Dineout) and event bookings (SteppinOut), product pickups/deliveries (Genie) and other hyperlocal commerce activities. As of 30th June 2024, the company employed 5,401 people.
 

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