Swiggy IPO: Swiggy’s shares debuted on the Indian stock with a slight premium over the issue price on Wednesday. Swiggy’s shares debuted on the Bombay Stock Exchange (BSE) at Rs 412, an 5.6% premium to the issue price of Rs 390. On the National Stock Exchange (NSE), Swiggy’s shares opened at Rs 420, surpassing the IPO price by Rs 30. Swiggy’s stock market debut exceeded expectations, surging beyond muted grey market predictions.
Swiggy’s Rs 11,327-crore IPO was fully subscribed on the last day, attracting 3.59 times more bids than available shares. Notably, Swiggy’s initial public offering (IPO) was priced between Rs 371 and Rs 390 per share.
ALSO READ: Swiggy IPO: Shares Listed At 7.6% Premium On Its Listing Day – Check All Details
Swiggy IPO: Should You Invest In Its Shares?
JM Financial recommends “Buy” on Swiggy, setting a target price of Rs 470. While Swiggy presents a decent upside on an absolute basis, we would prefer Zomato if asked to choose between the two. Zomato’s superior execution in the past and its market leadership across key segments make it a more favourable option. We recommend that investors consider both companies, with a higher weightage toward Zomato, as both are likely to be among the fastest-growing names in the consumption space,” said JM Financial.
Macquarie starts coverage on Swiggy with “Underperform” rating, targeting Rs 325. Macquarie notes Swiggy’s long growth potential, but flags challenges in achieving profitability.
“The IPO’s valuation, while appearing reasonable based on certain metrics, presents a challenge due to negative earnings. Additionally, the current volatile market conditions may further impact the listing performance,” said Shivani Nyati, head of wealth at Swastika Investmart.
“Despite being the second-largest e-commerce and food delivery player, it received a sluggish response from overall investors. While on a consolidated basis, the overall subscription figures look good, but Day-3 Qualified Institutional Buyers (QIB) investors supported Swingy ipo helping it to successfully sell out, which looks similar trend to Hyundai Motors IPO,” said Prashanth Tapse, senior vice-president (research) and research analyst at Mehta Equities. Investors should retain Swiggy shares for an extended period, he recommends.
(Disclaimer: This stock market news is for informational purposes only and should not be construed as investment advice.)
ALSO READ: ‘You And I…’, Zomato Welcomes Swiggy To Indian Stock Market With A Warm Tweet, Later Reacts
