Food and grocery delivery unicorn Swiggy's market capitalisation rose 14.73 per cent to hit Rs 1 lakh crore in the initial hours of trading after listing on the bourses on November 13.
The stock listed at an 8 per cent premium on the BSE and NSE at Rs 420 apiece, compared to its issue price of Rs 390 apiece. Its valuation at the upper end of the IPO price was Rs 87,087 crore.
Swiggy shares were up by 14.73 per cent to Rs 447 apiece when it hit Rs 1 lakh crore of market capitalisation. For comparison, its arch rival Zomato currently has a market capitalisation of Rs 2.3 lakh crore.
Advertisement
Swiggy IPO Subscription Trails at Third-Lowest
Swiggy’s initial public offering, the country’s second-largest this year, drew a lukewarm market response, compared to its new-age peers. At 3.59 times, the IPO’s subscription was the third-lowest of all new-age companies since 2021 when, led by Swiggy’s arch-rival Zomato, cash hungry start-ups began making a beeline for the bourses.
Although a last-minute push from institutional buyers managed to carry Swiggy over the subscription line, it failed to enthuse high net-worth individuals, falling short of the full subscription mark of the portion reserved for this segment.
Domestic brokerages, including Motilal Oswal and Arihant Capital, recommended the scrip only to high-risk investors, while Aditya Birla Money asked investors to stay away altogether.
Advertisement
The Swiggy IPO comprised a fresh issue of Rs 4,499 crore and an offer for sale of Rs 6,828 crore from existing shareholders. Swiggy intends to use Rs 165 crore of the proceeds to repay or prepay debts of its subsidiary Scootsy, Rs 1,179 crore for expanding dark stores, Rs 703 crore for technology and cloud infrastructure, Rs 1,115 crore for marketing and brand promotion and the remainder for general corporate expenses.
Just one email a week