Swiggy Shares Listed At ₹420 With a Premium of ~8% on NSE

Swiggy, a prominent player in India’s food delivery sector, made a market debut on Wednesday, November 13, 2023. Swiggy’s shares are listed with a premium of 7.69% over its IPO price of ₹390 on the National Stock Exchange (NSE), opening at ₹420. On the Bombay Stock Exchange (BSE), the stock debuted with a premium of 5.64% at ₹412. Swiggy IPO price band was set at ₹371 to ₹390 per share. At 10:30 AM, Swiggy shares price were hovering at ₹400.40 on BSE.

Swiggy’s IPO, which concluded last week, garnered a decent subscription of over three times. The company intends to utilize the IPO proceeds to invest in its subsidiary Scootsy, bolster its technology and cloud infrastructure, and enhance brand marketing and business promotion over the next four to five years.

Swiggy Operational Overview

Swiggy operates in a competitive landscape, primarily vying with Zomato for market dominance in India’s online food delivery industry. Both companies have significantly invested in the burgeoning “quick-commerce” segment, which focuses on delivering groceries and other products within a 10-minute timeframe.

It’s important to note that Swiggy has consistently incurred net losses since its inception and has negative cash flows from operations. For the fiscal year ended March 2024, the company reported a loss of ₹ 2,350 crore, a significant improvement from the ₹4,179 crore loss in FY23 and ₹3,628 crore loss in FY22. However, revenue from operations surged to ₹11,247 crore in FY24, doubling from ₹5,704 crore in FY22.

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