Shares of food delivery giant Swiggy will list on stock exchanges on Wednesday, November 13, following its high-profile IPO launch last week. However, despite being the second largest e-commerce and food delivery player, it has received a rather slow response, according to a study. Economic Times report. Just like the Hyundai IPO, it was slightly more than tripled subscribed on the last day, mostly by institutional investors, the report said.

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According to the report, gray market premium (GMP) is only ₹This is 0.26% above the export price.

“We believe that majority of investors, especially non-institutional and retail, are lagging behind due to several reasons such as Negative cash flow business model followed by high competitive concerns and ongoing negative market sentiment,” Prashanth Tapse of Mehta Equities was quoted as saying in the report. he says.

Swiggy has only incurred a net loss every year since its inception and has only generated negative cash flow from operations, unlike its currently listed rival Zomato.

Swiggy and Zomato are not only competing with each other in food delivery, but are also competing with each other in the express commerce segment with Instamart and Blinkit respectively delivering a bunch of products in 10 minutes.

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Swiggy’s net loss for financial year 2023-24 ₹2,350 crore, less than this loss ₹4,179 crore in the previous year. happened ₹3,628 crore in 2021-22.

But revenue from operations in 2023-24 doubled ₹11,247 crore ₹5,704 crore in FY22, according to the report.

“Given the low subscription demand and market sentiment, there is a very high probability of it listing flat to negative in the range of plus or minus 5-10% on the issue price,” he added.

Swiggy has proposed to use the proceeds from the IPO to invest in Scootsy, a subsidiary, and for technology, cloud infrastructure, brand marketing and business promotion over a period of four to five years.

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