The grey market premium (GMP) of Swiggy stood at 5% or Rs 19 in the unlisted market three days ahead of its initial public offering (IPO), which will hit the Street on November 6 and will be available till November 8.

However, a month ago, Swiggy shares were trading at Rs 515 in the unlisted market.

The company has fixed a price band of Rs 371-390 per share for the IPO, which means that the investors are willing to pay about Rs 409 for one share of the company.

Swiggy is serving the IPO at a lower valuation of $11.3 billion as against its earlier target of around $15 billion. The valuations were reduced due to prevailing market volatility and the lacklustre debut of Hyundai India.

Swiggy’s last private round valuation was $10.7 billion when it raised $700 million in a round led by US asset manager Invesco in January 2022.

The company has increased its fresh equity sale in the IPO to Rs 4,499 crore, while reducing its offer for sale (OFS) component to 17.5 crore shares.

A host of celebrities from entertainment and sports have bet on India's food and grocery delivery market, hoping that Swiggy would capture the lion's share of the market.

Leading up to the IPO, Swiggy's shares were actively traded in the unlisted market, with notable cricketers Rahul Dravid and Zaheer Khan, tennis star Rohan Bopanna, studio owner Karan Johar, and actor and entrepreneur Ashish Chowdhry owning a piece of the company.

After its IPO, analysts believe Swiggy will aspire to turn EBITDA positive in the near term by curtailing its promotional and advertising spends and according to a report, the online food delivery market is expected to grow at 20% during CY23-28, largely led by user CAGR of 8-10%.

Swiggy competes with Zomato in India's online restaurant and food delivery sector, and both have made major bets on a boom in "quick-commerce," where groceries and other products are delivered in 10 minutes.