Swiggy Maintains Investor Confidence as Shares List at 8% premium over IPO price As of market close, Swiggy's share price stood at INR 464 on the NSE recording a high and low of INR 465.80 and INR 391, respectively.
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The much-awaited IPO listing of food delivery platform Swiggy received a moderately positive response after listing at a premium of nearly 8 per cent on the National Stock Exchange (NSE). The stock debuted at Rs 420 per share on the NSE, up 7.69 per cent over the IPO price of Rs 390.
As of market close, Swiggy's share price stood at INR 464 on the NSE recording a high and low of INR 465.80 and INR 391, respectively.
Online stock trading platform Bajaj Broking said that 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 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," Bajaj Broking said in a statement.
Mukul Arora, Co-Managing Partner at Elevation Capital which led the seed investment round for Swiggy said that the firm has seen the food delivery company grow from 25 restaurants and 40 orders per day.
"And now creating positive impact in the lives of tens of millions of consumers, over half a million delivery partners and hundreds of thousands of restaurants. And beyond these numbers, Swiggy has completely redefined convenience for Indian consumers, and has become a household name," said Arora.
Swiggy's competitor Zomato and the market leader by a decent margin, took to social media in response to its rival's debut on the mainboard.
Zomato CEO Deepinder Goyal said, "Couldn't have asked for a better company to serve India with," as he took to X to express his thoughts.
Congratulations @swiggy!
— Deepinder Goyal (@deepigoyal) November 13, 2024
Couldn't have asked for a better company to serve India with. https://t.co/ZgU5tIt1pW
Nitin Kamath, Founder and CEO at Zerodha said in a post on X: "I had tweeted this in 2019 when we had very few aspirational brands worth investing in. But since then, it's crazy how much the Indian markets have changed in terms of the companies, the investor base, etc. I hope we see more homegrown brands IPO in the coming years," he said, expressing his thoughts about the growing Indian market.
Congrats to @Swiggy on the listing.
— Nithin Kamath (@Nithin0dha) November 13, 2024
I had tweeted this in 2019 when we had very few aspirational brands worth investing in. But since then, it's crazy how much the Indian markets have changed in terms of the companies, the investor base, etc.
I hope we see more homegrown brands… pic.twitter.com/HqUfNEXVF1
Swiggy's debut on the market also has reportedly resulted in a major wealth creation event for its employees, unlocking approximately INR 9,000 crore in ESOP value. Around 5,000 employees are set to benefit, with nearly 500 of them expected to come in the crorepati-league.
According to Swiggy's prospectus, the company has rolled out three ESOP plans so far – one each in 2015, 2021, and 2024. This aggregates to a pool of almost 230 million shares. Of these, 9 million options have been exercised into shares, while the remaining are yet to be exercised.
