Swiggy Shares Debut with Significant Premium on Stock Market Listing

Swiggy, the Indian food delivery and grocery major, made a notable debut on the stock markets on November 13, 2024. The company’s shares listed at a premium over the initial public offering (IPO) price, defying earlier grey market predictions. On the National Stock Exchange (NSE), Swiggy shares opened at Rs 420, marking a 7.69% increase from the IPO price of Rs 390. Similarly, on the Bombay Stock Exchange (BSE), the stock debuted at Rs 412, showing a 5.64% premium.

The IPO, which was priced between Rs 371-390 per share, was oversubscribed 3.59 times, indicating strong investor interest. The qualified institutional buyers (QIBs) segment led the subscription with a 6.02 times rate, while retail investors subscribed to their portion 1.14 times. Employees’ reserved shares were subscribed 1.65 times, and non-institutional investors (NIIs) showed a lower subscription level at 0.41 times.

The Rs 11,327-crore IPO, one of the largest in India this year, comprised a fresh issue of Rs 4,499 crore and an offer for sale (OFS) of Rs 6,828 crore. The proceeds from the fresh issue are earmarked for enhancing technology and cloud infrastructure, strengthening brand presence, promotional activities, debt settlement, potential acquisitions, and general corporate requirements.

Swiggy’s market capitalization reached Rs 89,549.08 crore during early trading hours, and the listing is expected to generate substantial wealth for its employees, with around 500 employees set to enter the ‘Crorepati’ Club due to the unlocking of employee stock options (ESOPs).

The company’s successful listing marks a significant milestone in India’s startup ecosystem, following in the footsteps of other major tech companies like Paytm and Flipkart.