Dwindling grey market premium for Swiggy shares indicates a tepid listing for the food delivery platform, which is set to receive bids for its initial public offer from November 6 to November 8.

Latest data from IPO Watch shows its GMP at ₹25 per share, a premium of up to 6.41 per cent to its price band, against GMP of ₹130 per share on October 29.

Last week, the start-up had announced a price band of ₹371-390 for its share float. Investors will have to subscribe to a minimum of 38 shares and in multiples of 38 thereafter.

Sources said the soft GMP is on account of the current market conditions, hit by multiple headwinds that include poor corporate earnings by listed firms, FPI outflows to China and uncertainties surrounding the US presidential elections.

At the upper end of the price band, the offering will garner ₹11,330 crore, which includes fresh issue of shares worth ₹4,490 crore.

The company plans to use the proceeds to repay a debt of up to ₹250 crore, invest in dark stores used by the quick commerce business and technology and cloud infrastructure.

As of June 30, its logistics subsidiary Scootsy was operating close to 600 dark stores in the country on lease, or leave and license agreement.

Swiggy said most of these agreements are subject to lock-in for a period ranging from six months to 12 months, with penalty upon termination by Scootsy prior to the expiry of the lock-in period.

The secondary share sale is being done by venture capital fund Accel India, Tencent Cloud Europe and Alpha Wave Ventures.

The IPO arrives at a time of heightened concerns on urban demand slump, though the management stressed it is unaffected by the broader trends in the economy.

"So far, we have not seen the impact of demand on our business," CFO Rahul Bothra said las week.