Swiggy Share Price: Stock pares gains to trade 4.5% lower after rising over 7% intraday

The stock hit an intraday high of ₹489.4 per share, reflecting an increase of 25.4% from the issue price on the NSE. The market capitalisation of the company also crossed ₹1 lakh crore mark.

However, the scrip pared gains and traded 4.4% lower at ₹435.9 apiece at 2:31 pm.

Swiggy share price: Retail investors make strong returns on their investment

The minimum bidding quantity for retail investors applying for Swiggy IPO was 38 shares. Retail investors who were allotted shares in the primary issue would have made a profit of at least ₹18,597.2 (489.40 x 38) if they had held the stock when it hit an intraday high of ₹489.40 on the NSE on the day 2 of listing.

The ₹11,327-crore initial public offer of Swiggy, with a price range of ₹371-₹390 per share, was subscribed 3.59 times.

The company's issue had a fresh issue of equity shares worth ₹4,499 crore as well as an offer-for-sale (OFS) of ₹6,828 crore.

The company will use the fresh issue proceeds to invest in technology and cloud infrastructure, invest in a subsidiary, promote brand awareness and business, pay debt, and for general corporate purposes.

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

"We are expecting very solid growth for the next 3-5 years. We are expanding our geographical footprint and stores network for Instamart business," Swiggy Group CEO Sriharsha Majety said post the listing ceremony.

He also said that Swiggy's quick commerce arm Instamart's average delivery time has decreased over time in big cities, adding, "Our delivery time has reduced from 17 minutes to 12 minutes".

Majety said Swiggy plans to open bigger dark stores, with some as large as 8,000-10,000 sq ft.

In response to the CCI probe of food delivery platforms, including Swiggy, for anti-competitive practices, Majety stated, "We are fully compliant with all laws and regulations".