Online food delivery platform Swiggy saw a muted response to its Rs 11,327 crore IPO on the first day of bidding on Wednesday, as brokerages advised investors to avoid the IPO until the company's financial performance and growth outlook improve.
The IPO received bids for about 1.8 crore shares against around 16 crore shares on offer, according to the NSE data.
Till about 4 pm, Swiggy received a total of 1,78,10,182 bids as against 16,01,09,703 shares (a mere 0.11 times), as per the NSE data.
The non-institutional investors (NIIs) subscribed for 0.05 times the quota available for them, while retail individual investors (RIIs) applied for 0.52 times the total shares offered to them.
The issue will close for bids on November 8.
The Zomato rival has fixed the price band between Rs 371 and Rs 390. Swiggy shares will be listed on the exchanges on November 13, while the allotment of shares will take place on November 11.
According to a Choice Broking IPO note, the company 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. Another IPO note by Geojit said that "on the profitability side, Swiggy has witnessed setbacks and has recorded negative cash flow from operations since inception".
Motilal Oswal Financial Services Ltd recommended only "High-Risk investors to 'Subscribe for long term'".
Over the past three fiscal years, the company has consistently reported losses on a consolidated basis. In FY22, the total income was Rs. 6,119.78 crore, with a net loss of Rs 3,628.90 crore. The following year, FY23, saw an increase in total income to Rs 8714.45 crore, but the net loss also increased to Rs 4,179.31 crore. In FY24, the total income rose further to Rs 11,634.35 crore, while the net loss was reduced to Rs 2,350.24 crore. In the first quarter of FY25, ending on June 30, 2024, the company recorded a total income of Rs 3,310.11 crore and a net loss of Rs 611.01 crore.
"These figures indicate that the company has been experiencing continuous financial losses over the reported periods," said Bajaj Broking in its note.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
Featured Video Of The Day
US Election Results: Young Republican Rejoice Trump's Lead In Swing States
Swiggy Seeks Valuation Of $11.3 Billion; IPO To Open Tomorrow Share Market Crashes Ahead Of US Elections, Slides Over 1,000 Points Job Seeker's "Old-School Approach" Impresses Top Swiggy Executive. See Post LIVE: Trump Wins Tense White House Race, Makes Big Announcements Trump's 'America First' Agenda May Lead To Tighter H-1B Visa Rules: Experts Donald Trump Becomes First Republican To Win Popular Vote In 20 Years This US Woman Ages 34% Slower. Her Longevity Routine Costs Just $12 A Day UPSC NDA, NA 2024 Results Released, Check Details What Trump's Election Win Could Mean For Abortion Laws In US Track Latest News Live on NDTV.com and get news updates from India and around the world.