Swiggy shares rally 19% from issue price after modest listing; m-cap breaches ₹1 lakh crore mark

3 min read | Updated on November 13, 2024, 16:40 IST

SUMMARY

On the NSE, shares of the firm made the market debut at ₹420, a jump of 7.69%. The ₹11,327-crore initial public offer of Swiggy was fully subscribed on the final day of the share sale on Friday, ending with a 3.59-times subscription.

The ₹11,327 crore initial public offer of Swiggy was fully subscribed on the final day of the share sale on Friday

Swiggy IPO: Shares of Swiggy, the online food ordering and delivery company, surged as much as 19.43% on the NSE against the issue price of ₹390 to hit a high of ₹465.80 apiece on Wednesday, November 13, after the stock made a modest debut at the bourses in the morning.

The market capitalisation of the company breached the ₹1 lakh crore mark. Last seen, the figure stood at ₹1,03,203.61 crore on the NSE.

Earlier today, shares of food delivery and quick-commerce major Swiggy were listed with a premium of nearly 8% against the issue price of ₹390 on Wednesday.

The stock was listed at ₹412, reflecting a jump of 5.64% from the issue price on the BSE. Later, it surged 7.67% to ₹419.95.

On the NSE, shares of the firm made the market debut at ₹420, a jump of 7.69%.

Meanwhile, Deepinder Goyal, the CEO of rival company Zomato congratulated Swiggy on its stock market debut.

The ₹11,327 crore initial public offer of Swiggy was fully subscribed on the final day of the share sale on Friday, ending with a 3.59 times subscription.

The initial share sale had a price range of ₹371-₹390 a share.

The company's IPO (Initial Public Offering) had a fresh issue of shares worth ₹4,499 crore, along with an Offer-For-Sale (OFS) of ₹6,828 crore.

Going by the draft papers, the company plans to utilise proceeds from the fresh issue for investing in technology and cloud infrastructure; brand marketing and business promotion; and debt payment; and funds will also be allocated for inorganic growth and general corporate purposes.

Kotak Mahindra Capital Company Ltd, JP Morgan India Pvt Ltd, Citigroup Global Markets India Pvt Ltd, BofA Securities India Ltd, Jefferies India Pvt Ltd, ICICI Securities Ltd, and Avendus Capital Pvt Ltd were the book-running lead managers to the offer.

In an interview with PTI, CEO Food of Swiggy, Rohit Kapoor, acknowledged the possibility of the entry of Jio into the hyperlocal delivery market as a competitor but underscored that building a successful business in this sector requires more than just capital.

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Speaking on the competitive dynamics, Kapoor said that while funding is important, it is not the sole determinant of long-term success, referencing examples of well-capitalised players in India who failed to establish a lasting presence.

(With PTI inputs)

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