Swiggy is gearing up for a public listing on the BSE and NSE on November 13. Those keeping an eye on the markets expect Swiggy shares to hit investor demat accounts by November 12. However, the lack of a Grey Market Premium (GMP) may cause concern, hinting at the possibility of the shares being listed at a discounted price. So, if you are an investor looking forward to the IPO but worried that there is no GMP, here’s what you need to know.
Swiggy IPO Details
Swiggy has rapidly expanded its services and entered the Quick Commerce markets since the food delivery platform was incorporated in 2014. As a major quick commerce company, Swiggy enables its users to browse for and order not only food but also groceries and, now, a whole lot of other items. The CEO and CFO shared insights into the IPO, suggesting that the listing is bound to attract major investors, where some customers might even become potential shareholders. The popular food delivery platform has achieved a staggering 30% growth in its customer base
by offering multiple services (at least two or more).
These numbers have garnered preeminent investor attention, including those of SoftBank and Accel Partners. The famous app-based food delivery company has engaged with more than 120 investors, showcasing the desire for substantial long-term growth.
Why is GMP a Cause for Concern?
Swiggy’s IPO GMP as of November 12 is Rs. 2, much lower than what it was on Monday, at Rs. 5. This has led to a cautious trend in the markets, as investors approach this with tepid responses, as grey market sentiments fall. The price for Swiggy IPO was announced in October, with the shares making a stellar entry into the grey markets. While the GMP price was Rs. 130 for a piece, the stock tumbled during the opening of the subscription, especially after the stock market crashed, and this trend is likely to continue. GMP has tumbled to Rs. 2 in just two weeks, and investors are uptight as concerns of a muted debut hover around.
Conclusion
The trend with GMP may be alarming, but experts say that the grey market has no ties to the balance sheet as it is non-regulated. They advise investors to stick to the basics and rely on their convictions, but only after thoroughly researching the financials. According to stock market pundits, grey market premiums may as well be artificial, owing to the high stakes in the issue.
Swiggy IPO
