The food delivery app Swiggy’s IPO will face the market on 6 November. Although the GMP shows a slight improvement in pricing compared to the last week, listing gains will remain modest. This suggestion comes after observing the Grey Market Premium (GMP) for Swiggy’s IPO. While the overall market remains negative, it will be raising concerns about the performance of the food delivery app.
On Monday, the Indian market experienced a significant drop in Sensex at nearly 942 points, a new low after almost three months. The market was affected and this caused the Nifty to slip below the 24,000 mark. This negative fall is impacting investors’ sentiments about their confidence in the Swiggy IPO.
As the market prepares for the launch, all eyes are on the food delivery app’s market behavior.
Grey Market Ahead Of Swiggy’s IPO Launch
Food delivery app Swiggy’s IPO is showing small but positive gains in the GMP ahead of its launch. The IPO is currently running at a premium of Rs 20-22. This indicates the investors’ willingness to pay 5.46% more than the IPO’s original price. The price is positive compared to last week’s pricing. Last week, around 1 November, the shares of the food delivery app were trading only at Rs 18 premium. It was just 4.62% higher than the original price of the IPO.
However, some concerns could affect how well the IPO performs once it hits the market. The major concern surrounding the IPO about its performance is because of the slowing down of demand in the cities, foreign investors pulling out money, and negative market sentiments. This is making the investors and enthusiasts a bit cautious.
The mixed market sentiment will now hang in the air to watch how Swiggy’s IPO will perform as it gets ready to go live.
IPO Bidding Day
Swiggy IPO is scheduled for bidding from November 6 to November 8 and the company in quick commerce has had rapid growth which now accounts for 40% of its revenue. The food delivery app Swiggy is expecting a growth similar to its competitor, Zomato.
As per Reuters, some of the huge investors like Norges the Norway sovereign wealth fund and Fidelity have placed bids of around $15 billion for the Swiggy IPO. That figure is 25 times larger than the $605 million share set aside for the large investors.
Swiggy has cut the expected valuation for IPO to $11.3 billion, 25% lower than the earlier $15 billion estimate The share price band has been fixed at Rs 371-390.
