Shares of Swiggy made a strong debut on Wednesday, November 13, and listed at a premium of nearly 8%. The stock opened at Rs 420 on the NSE, up 7.69%, and Rs 412 on the BSE, with a 5.6% premium over its initial public offering (IPO) price of Rs 390.
The stock continued its upward trajectory post-listing and surged 15% to hit an intraday high of Rs 449 per share on the BSE.
Swiggy’s market capitalisation crossed the Rs 1 lakh crore mark at its peak during the session. In comparison, its key rival Zomato’s market capitalization stood at Rs 2.25 lakh crore.
Swiggyy IPO, which had a price band of Rs 371-390 per share, had seen a grey market premium (GMP) of Rs 2 on the day before listing. Analysts had initially expected a subdued listing based on the company’s ongoing losses despite steady revenue growth.
On top of that, there were concerns about the company’s negative cash flow business model, high competition, and the broader negative market sentiment, which led to low demand from non-institutional and retail investors.
Despite these concerns, the IPO ended up receiving decent interest. The IPO was subscribed 3.59 times. The retail category was subscribed 1.14 times, the qualified institutional buyers (QIBs) category saw a 6.02 times subscription, while non-institutional investors (NIIs) subscribed just 0.41 times.
The Rs 11,327 crore IPO consisted of a fresh issue of 11.54 crore shares amounting to Rs 4,499 crore. It also had an offer for sale of 17.5 crore shares worth Rs 6,828 crore.
Founded in 2014, Swiggy is an online food delivery platform that partners with over 200,000 restaurants across India. It primarily operates as a B2C marketplace, aggregating restaurant and merchant partners who list their food and products for users to discover and purchase. It facilitates order fulfillment through delivery, payments, reservations, and lead generation for partners.
For the June 2024 quarter, Swiggy posted a net loss of Rs 611.1 crore on revenue of Rs 3,310.11 crore. For the financial year ending March 31, 2024, the company reported a net loss of Rs 2,350.24 crore on revenue of Rs 11,634.35 crore.
