Foodtech major Swiggy‘s shares closed at INR 455.95 on the BSE, a 16.91% increase from its IPO price of INR 390. The stock listed at INR 412, a 5.6% premium, and reached an intraday high of INR 465.30.
Swiggy’s market capitalization at INR 1.02 lakh Cr
Notably, the company’s market capitalization stood at INR 1.02 lakh crore ($12.09 billion), with over 11.29 crore shares traded. In contrast, rival Zomato‘s market capitalization was INR 2.28 lakh crore ($27.07 billion), with its shares ending 0.9% lower at INR 258.55.
Continue Exploring: JM Financial initiates coverage on Swiggy with ‘Buy’ recommendation
Meanwhile, Brokerage firm JM Financial initiated coverage on Swiggy with a ‘buy’ recommendation and a price target of INR 470, citing the company’s duopoly structure in the food delivery market. “While India’s online food delivery market is likely to grow at a healthy CAGR of ~20% in the foreseeable future, the odds of disruption by new competition appear miniscule today,” JM Financial stated.
Further the firm highlighted Instamart’s growth potential, noting that the quick commerce market is essentially a play on the broader retail market, valued at $1 trillion in 2022.
Swiggy’s IPO oversubscribed by 3.59 times
Earlier, Swiggy’s IPO was oversubscribed 3.59 times, with qualified institutional buyers subscribing 6.02 times and retail individual investors subscribing 114%. The IPO comprised a fresh issue of INR 4,999 crore and an offer for sale of 17.5 crore shares.
Continue Exploring: Global investment firm Prosus earns $2 Bn from Swiggy’s IPO
For now, the successful IPO resulted in approximately 500 Swiggy employees joining the ‘crorepati’ club. With its strong market debut, Swiggy is poised for continued growth in the food delivery and quick commerce markets.
