In a promising debut, Swiggy shares opened with a strong premium on Wednesday, marking the company’s entry into the stock market. Despite flat predictions from grey market trends, Swiggy’s shares opened with gains on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
On the BSE, Swiggy shares started trading at Rs 412, a premium of Rs 22 (5.6%) over the IPO allotment price of Rs 390. The stock performed even better on the NSE, debuting at Rs 420—a 7.6% increase from the IPO price.
The food delivery giant’s Rs 11,327.43 crore IPO consisted of a fresh issue totaling 115,358,974 shares, as well as an offer for sale of 175,087,863 shares, each with a face value of Re 1. Shares were available in a price range of Rs 371-390, with a minimum lot size of 38 shares.
Swiggy’s IPO closed on November 8, 2024, and attracted notable interest from investors, oversubscribing by 3.59 times. Institutional investors showed the highest interest, subscribing 6.02 times their allocation, while retail investors subscribed 1.14 times. The basis of allotment was finalized on November 11, with Link Intime India managing the registry and prominent banks like Kotak Mahindra Capital Company, Jefferies India, Avendus Capital, and others serving as lead managers for the issue.
The company plans to use the IPO proceeds to expand its quick commerce operations, support its subsidiary Scootsy, and invest in technology upgrades, brand marketing, debt repayment, and potential acquisitions. As a major player in the food and grocery delivery sector, Swiggy’s platform enables customers to order food, groceries, and household essentials via a single app, providing a convenient, unified experience.
Swiggy’s solid debut underscores the growth potential seen in India’s online delivery sector, with investors optimistic about the company’s expansion plans and strategic positioning.
