November 13, 2024
New Delhi, India
Swiggy IPO Listing
Swiggy made a strong stock market debut on November 13, with its shares opening at ₹420 apiece on the NSE, an 8% premium over the IPO price of ₹390. The stock also listed on the BSE at ₹412, marking a 5.6% premium.
IPO Listing Details:
- IPO Price Band: ₹371 – ₹390 per share
- Listing Price:
- NSE: ₹420 (8% premium)
- BSE: ₹412 (5.6% premium)
- Market Valuation at Debut: ₹89,549 crore
IPO Performance and Subscription:
Swiggy’s IPO, valued at ₹11,327 crore, received a solid response, being oversubscribed 3.59 times. The issue included a fresh capital raise of ₹4,499 crore and an Offer for Sale (OFS) of 17.51 crore shares worth ₹6,828 crore.
Subscription Breakdown:
- Retail Investors: Significant demand
- Qualified Institutional Buyers (QIB): Strong participation
- Overall Subscription: 3.59 times
Company Overview:
Swiggy is a leading player in India’s fast-growing online food delivery and quick commerce sectors. The industry has seen rapid expansion, growing from ₹112 billion in 2018 to ₹640 billion in 2023, with projections to reach ₹1,400-1,700 billion by 2028.
IPO Proceeds Utilization:
Swiggy plans to use the funds raised for:
- Investment in its subsidiary, Scootsy
- Enhancing technology and cloud infrastructure
- Brand marketing and business promotion
These investments are aimed at strengthening Swiggy’s market position over the next four to five years.
Early Trading Volatility:
Despite a strong opening, Swiggy shares experienced early volatility, dropping nearly 5% to ₹400.45 on the NSE. This fluctuation reflects mixed investor sentiments amid broader market uncertainty.
Swiggy’s listing performance defied grey market predictions of a flat debut, surprising market watchers with its initial premium. As the company capitalizes on its IPO proceeds, investors are keenly watching its growth in the competitive e-commerce landscape.
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