Shares of Swiggy rose 25% from its issue price to Rs 489.40 on Day 2 of the stock market debut. The stock made a positive debut on the bourses, listing at a premium of 7.7% on the National Stock Exchange. However, shares closed the day 7.5% lower at Rs 421.60. The issue did get a lot of investor attention after the initial subdued response and the stock closed day 1’s trade with a 17% jump.
With the current surge, the Swiggy market cap now stands at Rs 1 lakh crore.
Swiggy stock rally: Analysts see long-term value
JMFL initiates Coverage with a Buy rating as it considers the stock as one of the fastest growing consumption plays, ” We initiate on Swiggy with a ‘Buy’ rating and SOTP-based Mar’26 target price of Rs 470. Swiggy has played a pivotal role in the rapid expansion of India’s hyper-local on-demand market. It pioneered the full-stack food delivery model in 2014 and later in the midst of a pandemic introduced the dark store-led quick commerce (QC) model. Even today, it continues to be one of the leading hyperlocal delivery platforms in the country, bettered only by Zomato (BUY, TP of Rs 300). Despite having ceded some space to competition, it is one of the fastest growing consumption plays with multiple levers to move towards sustainable margins.”
Bajaj Broking added, “Swiggy’s listing on the Indian stock market has stirred up notable excitement, but early trading volatility reveals investor caution. While there’s optimism about Swiggy’s potential to capture further market share in India’s Android-evolving food delivery and quick commerce segments, the road to profitability may be bumpy. Swiggy has shown impressive growth potential, yet persistent losses over recent fiscal years signal challenges ahead. Investors may need to brace for a dynamic journey as the company seeks to balance expansion with sustainable financial performance.”
Swiggy’s FY24 valuation
Invesco, a US-based asset management firm, raised Swiggy’s valuation to $13.3 billion, ahead of its initial public offering. This was the fourth time in the past year that the asset management firm adjusted Swiggy’s valuation upward. In August, another US investor, Baron Capital, valued the company even higher at $14.74 billion as of June 2024.
Swiggy IPO GMP
The company had no premium or discount in the grey market. However, its grey market premium decreased before listing, falling from Rs 25 above the issue price on October 29.
Swiggy IPO Details
The IPO was opened on November 06 and closed on November 08. The IPO sold 11.54 crore fresh shares, which amounted to Rs 4,499 crore. Another component of the issue was an offer for sale of 17.51 crore shares which amounted to Rs 6,828.43 crore. The company’s IPO price band ranged between Rs 371 to Rs 390 per equity share.
Swiggy IPO allotment and listing
The IPO allotment was finalised on November 11. The registrar of the issue, Link Intime India, acted as the registrar of the issue. The minimum lot size for a retail application was 38 shares, totalling Rs 14,820. For a small NII, the minimum investment was 14 lots of 532 shares, amounting to Rs 2,07,480. For a big NII, it’s 68 lots of 2,584 shares, totalling Rs 10,07,760.