Swiggy share price gains over 6%, m-cap exceeds ₹1 lakh crore; here's why

The financial services company expects around 27% upside from Monday's closing on the stock exchanges.

Following the development, the stock rose as much as 6.32% on the National Stock Exchange (NSE). The market capitalisation crossed ₹1 lakh mark.

However, it pared some gains and was trading 3.44% higher at ₹445.50 apiece at 1:41 pm.

Earlier this month, Swiggy shares listed on the NSE at 7.69% premium to ₹420 a unit against the issue price of ₹390.

The stock is currently up 14.2% from the issue price.

UBS said that Swiggy is narrowing the gap with rival Zomato Ltd in terms of margin and scale in the online food delivery segment.

"While the company lost market cap in CY23, data from UBS Evidence food delivery receipts shows signs of market share stabilisation; the same is visible in the Q1 FY25 results as well," the Switzerland-based company said.

The ₹11,327 crore Swiggy IPO, which was subscribed 3.59 times overall, was a mix of fresh issue of shares and offer-for-sale (OFS) component.

Expecting very solid growth for next 3-5 years: Swiggy CEO Sriharsha Majety

Meanwhile, it should be noted that Swiggy Group CEO Sriharsha Majety, after the company's share listing, said that the food app is expecting "very solid growth" for the next three to five years.

"We are expanding our geographical footprint and stores network for Instamart business," he said, adding that quick commerce arm Instamart's average delivery time has decreased in major cities.

"Our delivery time has reduced from 17 minutes to 12 minutes," Majety said.

Swiggy share price: Financials