Swiggy had an amazing listing day on the stock market. Shares of the company soared on their market debut Wednesday, opening at a significant premium. The company’s share closed at Rs 455.95 apiece, reflecting an increase of 10.67% on the Indian bourses. As the excitement unfolded, Swiggy took to X, “bohot ghhdjfhjfjhdsjdjs feel ho raha hai. iss khushi ko kaabu kaise karu? (I’m overwhelmed with joy; how can I contain it?)”
bohot ghhdjfhjfjhdsjdjs feel ho raha hai. iss khushi ko kaabu kaise karu? 😭🥰 #SwiggyIPO
---Advertisement---— Swiggy Food (@Swiggy) November 13, 2024
The company’s shares debuted on the Bombay Stock Exchange (BSE) at Rs 412, surpassing the issue price by 5.6%. The shares began trading on the National Stock Exchange (NSE) at Rs 420, Rs 30 above the initial public offer price. Notably, Swiggy’s stock market debut exceeded expectations, beating muted grey market predictions. Swiggy’s Rs 11,327-crore IPO drew unprecedented demand, oversubscribing 3.59 times on its final day.
Swiggy’s stock price today fluctuated between a lifetime high of Rs 465.30 and a lifetime low of Rs 390.70 per share. The company currently holds a market capitalization of Rs 1,03,987.07 crore.
What Next For Swiggy?
JM Financial assigns a “Buy” rating to Swiggy with 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 initiates coverage on Swiggy with an “Underperform” rating and Rs 325 target. Macquarie acknowledges Swiggy’s long-term growth prospects, but highlights profitability hurdles.
“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.
ALSO READ: Swiggy VS Zomato: Which Food Delivery Giant Will Shake Up India’s Stock Market?
