Swiggy Shares See Modest 8% Gain on Market Debut

Swiggy Listing: The shares of the Zomato rival listed with a premium of nearly 8 per cent against the issue price of Rs 390 on Wednesday.

The stock listed at Rs 412, reflecting a jump of 5.64 per cent from the issue price on the BSE (Bombay Stock Exchange). Later, it surged 7.67 per cent to Rs 419.95.

At the NSE (National Stock Exchange), Swiggy shares made the market debut at Rs 420, a jump of 7.69 per cent.

The company's market valuation stood at Rs 89,549.08 crore during the early trade.

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

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

While most brokerage houses had given a 'subscribe' rating based on a long-term outlook, 'caution' was still the watchword among D-street players. This was largely because Swiggy remains a loss-incurring company, and faces tough competition from its major rival, Zomato.

While the profit picture remains blurry, Swiggy is focusing on expanding its quick commerce segment as competition continues to intensify in the space. However, there are some green signals as well.

Speaking on the listing, Shivani Nyati, head of wealth at Swastika Investmart said that, "the listing reflects a degree of optimism about Swiggy's long-term growth prospects, driven by its strong brand recognition, extensive network, and dominant position in the food delivery market. However, the company's continued losses and the challenging market conditions may temper investor enthusiasm in the long term."

"Investors should approach Swiggy with a balanced perspective, considering the potential for future growth and the associated risks. Those who are holding it may keep a stop at around the issue price," Anand Rathi stated in its pre-listing report," she further added.

(With inputs from PTI)