Swiggy’s Stock Soars: Market Cap Nears Rs 1Lakh Crore Following Initial Listing Boost

Swiggy’s shares made a notable entry on the stock exchanges on November 13, defying initial muted expectations in the grey market. On the National Stock Exchange (NSE), Swiggy shares were listed at Rs 420 per share, marking a 7.69% premium over the IPO price of Rs 390.

Swiggy Debuts on Stock Market with a 7.69% Premium Listing

On the Bombay Stock Exchange (BSE), the shares debuted at Rs 412 per share, a premium of 5.6%. The stock then surged further on the NSE, reaching an intraday high of Rs 449, or a 15.12% rise, and briefly lifting the company’s market valuation to the Rs 1 lakh crore mark. During early trading, Swiggy’s market valuation stood at Rs 89,549.08 crore.

Despite a strong opening, Swiggy shares experienced a swift decline, dropping by nearly 5% to Rs 400.45 on the NSE around 10:20 a.m.

This initial volatility reflects investor uncertainty amid broader market fluctuations. Swiggy’s Rs 11,327 crore initial public offering (IPO) was fully subscribed by its final day, with subscriptions reaching 3.59 times the offered shares. The IPO had a price range set between Rs 371-390 per share.

Global brokerage Macquarie initiated coverage of Swiggy stock with an “underperform” rating and a target price of Rs 325, indicating a cautious outlook.

Mixed Investor Reactions Follow Swiggy’s Strong IPO Launch

The firm acknowledged Swiggy’s significant growth potential but noted that achieving profitability could be a challenging, uneven process. Akriti Mehrotra, a research analyst at StoxBox, recommended holding Swiggy shares for medium- to long-term investment.

Narendra Solanki, Head of Fundamental Research at Anand Rathi Shares and Stock Brokers, also shared a positive outlook, stating, “We believe that Swiggy is well-positioned to tap into huge opportunities in quick commerce, and as it is fairly priced, the issue may be considered for long-term investment post-listing.”

Swiggy is a leading player in India’s rapidly expanding online food delivery and quick commerce industries, both of which have seen tremendous growth in recent years.

The online food delivery market alone grew from Rs 112 billion in 2018 to Rs 640 billion in 2023, with projections reaching Rs 1,400-1,700 billion by 2028.

This growth is being driven by rising incomes, increased urbanization, and changing consumer lifestyles across the country. Swiggy is particularly well-positioned to benefit from these trends, especially in smaller cities where the demand for convenience is growing.

Swiggy and Zomato Share Light-hearted Exchange After Stock Market Debut

The company’s Instamart service is also a key area of focus, as Swiggy works to close the market share gap with competitors like Zomato and Blinkit.

Swiggy’s market debut was met with a lighthearted exchange from its main competitor, Zomato, which posted a celebratory message on X (formerly Twitter), saying, “You and I… In this beautiful world,” along with a photo of Swiggy and Zomato delivery partners posing together outside the Bombay Stock Exchange.

The image included a banner celebrating Swiggy’s stock listing, symbolizing camaraderie between the two companies. Swiggy responded with the caption, “giving Jai and Veeru vibes,” a reference to the famous friendship from the Bollywood classic Sholay.

Other companies joined in on the exchange, including HDFC Bank, which added, “Friendship is the best kind of deposit!” and CoinDCX, which humorously commented, “One day… me and who?”

Deepinder Goyal, Zomato’s CEO, also congratulated Swiggy, sharing, “Couldn’t have asked for a better company to serve India with.” The exchanges highlighted the cordial rivalry between the two food delivery giants, reflecting their shared mission of serving India’s rapidly growing online food and quick commerce needs.

Swiggy’s successful IPO and market debut underscore the company’s position as a significant player in India’s online food and quick commerce sectors.

Amid volatile trading and mixed market sentiments, Swiggy’s growth potential remains strong, especially as it continues to expand its services and leverage changing consumer preferences. Investors, analysts, and industry leaders alike are keeping a close watch on Swiggy as it navigates the complexities of the stock market, with many optimistic about its long-term trajectory.