Swiggy shares rallied over 10 per cent to close at ₹464 and ₹455.95 on the NSE and BSE, respectively. The stock ended the day’s trade 18.97 per cent and 16.8 per cent higher over the issue price of ₹390.
Shares of food delivery and grocery major debuted at a premium of 7.6 per cent and 5.6 per cent on the NSE and BSE at ₹420 and ₹412, respectively.
Addressing the NSE listing ceremony, Sriharsha Majety, MD and Group Chief Executive Officer of Swiggy Ltd, said that the Swiggy idea manifested in his college days in IIM Calcutta. “I completely forgot about it after that college project finished, and then, you know, very different way again, came to the same idea without knowing it at all,” he added.
Anand Kripalu, Chairman and Independent Director, Swiggy Ltd, emphasised “We as a board, are excited to work with the management to shape and create an even more exciting future for this business.”
The ₹11,327.43 crore IPO was priced at ₹371-390 with a lot size of 38 shares.
Brokerages view
According to Shivani Nyati, Head of Wealth, Swastika Investmart Ltd., the listing reflects a degree of optimism about Swiggy’s long-term growth prospects, driven by its strong brand recognition, extensive network, and dominant position in the food delivery market. “However, the company’s continued losses and the challenging market conditions may temper investor enthusiasm in the long term,” Nyati added.
Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, advised allotted investors to hold for long-term despite knowing short-term volatility and competitive pressures in the sector.
Global brokerage Macquarie has initiated coverage on Swiggy with an underperform rating at a target price of ₹325. Meanwhile, domestic brokerage JM Financial has initiated coverage on the stock with ‘buy’ call at a target price of ₹470. The brokerage emphasised that a duopoly structure should ensure steady growth and profits.
JM Financial says it would prefer Zomato if asked to pick only one due to its superior execution in the past and market leadership across key segments, while on an absolute basis Swiggy offers decent upside.
Swiggy IPO
Swiggy IPO was oversubscribed by 3.60 times, with QIBs booked 6.02 times, retail investors’ portion 1.14 times, employees’ portion 1.65 times, and NIIs lukewarm at 0.41 times.
The IPO comprised a fresh capital of ₹4,499 crore and an offer for sale (OFS) of 17.51 shares worth ₹ 6,828 crore. The food delivery major mobilised ₹5,085 crore from anchor investors.
Kotak Mahindra Capital Company, Citigroup Global Markets India, Jefferies India, Avendus Capital, J.P. Morgan India, BoFA Securities India, and ICICI Securities were the book-running lead managers of the IPO.
Swiggy stock recorded the day’s high at ₹465.80 on the NSE and at ₹465.30 on the BSE.
Swiggy-rival Zomato stock shares slipped 0.75 per cent to close at ₹259.02 on the NSE. Zomato shared a post on X earlier today showcasing Swiggy as a listed entity.
