Mumbai/IBNS: Online food ordering and delivery company Swiggys shares launched on the National Stock Exchange (NSE) with a 7.69 percent premium on Wednesday (Nov. 13), opening at Rs 420 per share compared to its IPO price of Rs 390.
Meanwhile, on the BSE, shares listed at Rs 412, a 5.6 percent premium over the IPO price, and later climbed 7.67 percent to reach Rs 419.95.
At one point, Swiggys market capitalization briefly approached Rs 1 lakh crore, settling at Rs 89,549.08 crore in early trading.
The stock reached an intraday peak of Rs 449 on the NSE, marking a 15.12 percent gain.
Despite entering the market with lower grey market expectations, Swiggys shares outperformed early forecasts by opening at a robust premium.
However, this strong start was followed by a dip, with shares slipping almost 5 percent to Rs 400.45 on the NSE by 10:20 am, reflecting early trading volatility as investor sentiment fluctuated.
Swiggys Rs 11,327-crore IPO was fully subscribed on its final day, achieving a subscription rate of 3.59 times, with a price range set between Rs 371-390 per share.
In a recent analysis, global brokerage Macquarie rated Swiggy as underperform and set a target price of Rs 325, citing substantial growth potential tempered by challenges in achieving profitability.
Operating within Indias fast-expanding online food delivery and quick commerce markets, Swiggy is positioned to capitalize on rising demand, especially in smaller cities.
The food delivery market surged from Rs 112 billion in 2018 to Rs 640 billion in 2023 and is projected to grow to Rs 1,400-1,700 billion by 2028, spurred by increasing income levels, urbanization, and lifestyle shifts.
Swiggy, as an industry leader, is focusing on strengthening its Instamart service while closing the market share gap with competitors such as Zomato and Blinkit, aiming to capture a larger share of this burgeoning market.
