Tepid response to Swiggy IPO continues, 35 pc subscription on Day 2

Swiggy IPO continued to see a tepid response from investors on the second day of bidding on Thursday. The Rs 11,327 crore IPO was subscribed 0.35 times or 35 per cent on the second day.

The food delivery company’s IPO was opened on Wednesday and subscribed 12 per cent on the first day.

As of 5 p.m. on Thursday, qualified institutional buyers (QIBs) subscribed 28 per cent or 0.28 times, the non-institutional investors (NIIs) portion saw 14 per cent or 0.14 times, retail individual investors (RIIs) portion was at 84 per cent or 0.84 times and employee portion was at 1.15 times or 115 per cent.

The public issue will close for bids on November 8. Swiggy has fixed the price band between Rs 371 and Rs 390. Food delivery company shares will be listed on the NSE and BSE on November 13, while the allotment of shares will take place on November 11.

Swiggy has experienced net losses annually since its incorporation and depends on numerous third-party providers for various operational aspects, including payment gateways and supply chain management, according to a Choice Broking IPO note.

Another brokerage firm Geojit said that “on the profitability front, Zomato’s rival has witnessed setbacks and has recorded negative cash flow from operations since inception.”

In the past three fiscal years, Swiggy has consistently reported losses on a standalone and consolidated basis. In FY 2021-22, the total re12venue was Rs 6,119.78 crore, with a net loss of Rs 3,628.90 crore.

The following year, FY 2022-23, saw an increase in total revenue to Rs 8714.45 crore, but the net loss also increased to Rs 4,179.31 crore. In FY 2023-24, the total revenue rose further to Rs 11,634.35 crore, while the net loss was reduced to Rs 2,350.24 crore.

In the June quarter of FY 2024-25, the company recorded a total revenue of Rs 3,310.11 crore and a net loss of Rs 611.01 crore.

Bajaj Broking said, “These figures indicate that the company has been experiencing continuous financial losses over the reported periods.”

(With inputs from IANS)