Swiggy IPO Fully Subscribed

8 Nov 2024 , 03:16 PM

Swiggy Ltd.’s IPO soaring through the last day of the bidding process.

The IPO have been completely subscribed thus far, reflecting the lacklustre demand. Not yet, the NII category has made it through.

Reduced listing gain potential is a major reason for the IPO’s lower-than-expected demand; analysts point to the company’s loss-making position and the unfavourable market sentiment as major deterrents.

There are serious concerns about profitability since investors are growing more leery of tech businesses that take a long time to report profitable results.

In the last two fiscal years, the company’s revenues have more than doubled to just over Rs 11,000 crore; yet, FY24 saw a loss of Rs 2,350 crore, meaning that the bottom line is still in the red.

Swiggy has set a cautious price of $11.3 billion for the IPO. Some analysts still view this as aggressive, though.

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