Swiggy IPO Lists at 5.64% Premium Above Issue Price on BSE/NSE Platform

Swiggy Limited, established in 2014 and operating India's leading food delivery and quick commerce platform with over 557 active dark stores across 32 cities, made its stock market debut on Wednesday, 13th November 2024, with its shares listing on both BSE and NSE. The company, which operates five distinct business units including food delivery, quick commerce, and out-of-home consumption, entered the public markets amid challenging market conditions.

Listing Details

• Listing Price: Swiggy shares were listed at ₹412 per share at 10:00 AM IST on both BSE and NSE, following a special pre-open session, marking a positive start to its journey as a publicly traded company.
• Comparison to Issue Price: The listing price represents a decent premium over the IPO issue price. Swiggy had set its IPO price band from ₹371 to ₹390 per share, with the final issue price being fixed at the upper end of ₹390.
• Percentage Change: The listing price of ₹412 translates to a premium of 5.64% over the issue price of ₹390.

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First-Day Trading Performance

• Opening vs. Latest Price: As of 09:46 AM IST, the stock was maintaining its opening price of ₹412.
• Market Capitalisation: As of early trading, the company's market capitalisation stood at ₹92,224.03 crore, with free float market cap at ₹8,300.16 crore.
• Trading Volume: The traded volume was 6.60 lakh shares with a traded value of ₹27.18 crore in early trading.

Market Sentiment and Analysis

• Market Reaction: The stock maintained stability at its opening price despite concerns from analysts about potential negative listing.
• Subscription Rate: The IPO was modestly oversubscribed by 3.59 times (as of November 8, 2024, 6:19:08 PM), with QIBs leading at 6.02 times subscription, followed by retail investors at 1.14 times, and NIIs at 0.41 times. The employee portion was subscribed 1.65 times.
• Trading Range: In early trading, the stock maintained a steady price of ₹412 without significant fluctuation.

Growth Drivers and Challenges

Expected drivers of future performance:

• Strong market position in food delivery
• Expanding quick commerce network
• Diverse business verticals
• Strong technology infrastructure
• Comprehensive business solutions for partners

Potential challenges:

• Continued operational losses
• Negative earnings concerns
• High competition in delivery space
• Path to profitability uncertainties
• Market volatility impact

Financial Performance

The company has shown mixed results:

• Revenue increased by 34% to ₹11,634.35 crore in FY2024 from ₹8,714.45 crore in FY2023
• Loss decreased to ₹2,350.24 crore in FY2024 from ₹4,179.31 crore in FY2023
• Q1 FY2025 showed revenue of ₹3,310.11 crore with loss of ₹611.01 crore

As Swiggy begins its journey as a listed entity, market participants will closely monitor its path to profitability and growth strategies. The positive listing despite challenging market conditions suggests investor confidence in the company's long-term potential in the food delivery and quick commerce sectors.