Swiggy $1.4 bln IPO opens for orders as Indian stocks lose some of their appeal

Swiggy $1.4 bln IPO opens for orders as Indian stocks lose some of their appeal.

Expert Analysis:

• IPO Valuation and Market Sentiment: Swiggy’s $1.4 billion IPO sees limited retail interest despite twice valuation cuts amid cooling momentum in Indian stocks.

• Low Grey Market Premium: Swiggy’s grey market premium is just 5% above the top price band, indicating subdued pre-listing demand, says Mahesh Ojha of Hensex Securities.

• Anchor Investor Support: Anchor investors, including Fidelity and Norway's sovereign wealth fund Norges, purchased shares worth $605 million in Swiggy's IPO.

• Swiggy’s Valuation Cut: Swiggy reduces its valuation by 25% to $11.3 billion to avoid a "bad" debut.

• Market Position: Swiggy holds a strong No. 2 position in India’s food delivery market with a 34% share, behind Zomato's 58%. In quick commerce, Swiggy's Instamart holds 20-25%, while Zomato’s Blinkit leads with 40-45%, according to brokerage estimates.