Swiggy Share Price & IPO Listing Live: Swiggy shares surge after listing at 7.6% premium on NSE

Anand Daniel, Partner at Accel

“As Swiggy hits the public bourses today, we at Accel reflect on the remarkable journey that Harsha, Nandan, and Phani, along with the Swiggy team, have undertaken. Being one of Swiggy’s first partners, when food delivery in India was still emerging, makes today especially meaningful. Guided by our thesis-led approach to food delivery, we were introduced to Harsha and his founding team in 2014—a connection that has since fueled countless innovations. This IPO is a testament to the grit, innovation, and consumer focus that Swiggy has consistently brought to the market. From ultra-fast grocery delivery with Instamart to ensuring safety and access during the pandemic, Swiggy has continually adapted to consumer needs with agility. Today’s IPO marks not only a milestone for Swiggy but a pivotal moment in India’s digital economy, impacting the daily lives of millions.”

While on an absolute basis Swiggy offers decent upside, we would prefer Zomato if asked to pick only one due to its superior execution in the past and market leadership across key segments. We, however, suggest that investors play both (preferably with higher weightage for Zomato), as in any case both are likely to be amongst the fastest growing consumption names and could, therefore, outperform the broader market returns.

Despite subdued market mood and sluggish response from overall investors, Swiggy listing surprised the market participants. Positive listing and price holding above its issue price of 390 should be seen as strong demand for the company. This shows investors are positive on the space and fear of missing out factor is holding investors not to miss the sector growth story, similar to ZOMATO post listing trend. 

Post Listing: For allotted investors, HOLD FOR LONG TERM despite knowing short term volatility and competitive pressures in the sector. For non-allottees, we advise to wait and watch for the price to settle and revisit to buy near issue price if we get due to market selloff pressure.

Swiggy, the leading food delivery and e-commerce platform in India, made a decent debut on the stock market, listing at around Rs 420, a 7.6% premium over its issue price of Rs 390. This performance is better than expected, considering the moderate subscription of 3.59 times and the initial muted investor response reflected in the low grey market premium.

The listing reflects a degree of optimism about Swiggy’s long-term growth prospects, driven by its strong brand recognition, extensive network, and dominant position in the food delivery market. However, the company’s continued losses and the challenging market conditions may temper investor enthusiasm in the long term.

Investors should approach Swiggy with a balanced perspective, considering the potential for future growth and the associated risks. Those who are holding it may keep a stop at around the issue price.

​​Swiggy shares​​ surged 6.58% on the NSE to trade at ₹447.65 as at 11.38 am.

On the BSE, the stock climbed 8.65% to ₹447.65

JMFinancial on Swiggy

Initiate Buy with TP of Rs 470

Food delivery – duopoly structure should ensure steady growth and profits

Instamart essentially a play on broader retail; has immense potential to grow

On an absolute basis Swiggy offers decent upside, but we would prefer Zomato if asked to pick only one

Zomato over Swiggy due to its superior execution in the past and market leadership across key segments

Suggest that investors play both (preferably with higher weightage for Zomato), as in any case both are likely to be amongst the fastest growing consumption names

Initiate U-P, TP Rs 325

India’s no-2 consumer app(FD, Quick Com, Out-of-Home), has a clear path to catch up with leader Zomato

Quick Com more complex, with no sustainable economic profits

Expect Group EBIT breakeven in FY28E even with 23% core rev CAGR

Swiggy shares climbed 4.58% on the NSE to trade at ₹439.25 as at 11.05 am.

Swiggy shares list at ₹420 on NSE, and at ₹412 on BSE.

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Shares of Swiggy were listed at ₹412 on the NSE, 5.6% premium against the issue price of ₹390.

Swiggy shares debuted on the NSE at ₹420, at a 7.6% premium over the issue price of ₹390.

Shares of Swiggy debuted 7.7% higher in pre-open trade on Wednesday, after institutional investors led its $1.4 billion initial public offering to be oversubscribed by more than three times last week.

The stock is to be listed at ₹420 on the National Stock Exchange (NSE), compared to its issue price of ₹390.

(NSE handle on X)

Listing of Swiggy Limited on November 13, 2024 

Symbol: SWIGGY 

Series: Equity “B Group” 

BSE Code: 544285 

ISIN: INE00H001014 

Face Value: Rs 1/- 

Issued Price: Rs 390/- per shar

Tencent Holdings Ltd.’s top backer Prosus NV said it has made more than $2 billion on its Swiggy investment as it continues to highlight the value of its portfolio outside of its stake in the Chinese tech giant. 

Prosus and its controlling shareholder Naspers Ltd. have invested $1.3 billion building a 31% stake in Swiggy ahead of its stock market debut in India on Wednesday. The food delivery firm is targeting an initial public offering valuation of up to $11.3 billion.

Prosus will sell down shares in the IPO and retain 25% of Swiggy, similar to its stake in Tencent, Prosus’s Chief Investment Officer Ervin Tu said an interview. The share sale is expected to generate a return of more than $500 million for Prosus, he added.

“We expect to benefit from the upside of the business, and the tailwinds of the fast-growing Indian market in future,” Tu said, noting that Prosus has invested in several Indian companies that could list on public markets. 

Bloomberg report

Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said: “We believe the majority of the investor especially NII’s & retail stayed back on few reason like Negative cash flow business model followed by concern on high competition and ongoing negative market mood. Considering low subscription demand from NII’s & Retail investors followed by market sentiments, there is a very high possibility of flat to negative listing in the range of +or - 5-10% on its issue price.”

Track bl’s stock market live updates here

Food tech major Swiggy’s IPO is set to unlock wealth to the tune of ₹9000 crore in employee stock ownership plan (Esop) wealth for its current and former employees, making it one of the largest wealth creation exercises of its kind in India’s startup ecosystem.

Nearly 5,000 current and former employees are set to benefit, with around 500 Swiggy employees to enter the ‘crore-pati’ club when the firm makes its stock market debut, according to sources.

Till date, Swiggy has has distributed ₹500 crore in Esops. In July this year, the company had announced its plan to buy back stocks worth up to $65 million.

This kind of wealth creation by a new-age company is unmatched at this scale apart from Flipkart which hich has undertaken bigger scale of buyback or payouts in the past. In 2023, Flipkart had paid out a total of $700 million to 17,000 employees.

Overall, Flipkart had over five share buybacks worth $1.4-1.5 billion in total over the past years.

Swiggy’s founders and top management of Swiggy were allocated Esops worth nearly worth $271 million in its latest stock ownership plan.

Investors probably won’t give a standing ovation for the e-commerce major’s market debut as they did when rival Zomato went public in 2021. Still, Swiggy can learn from Zomato’s epic stock meltdown the following year and an equally dramatic comeback since then. The best way for Swiggy to close the valuation gap with Zomato is to set clear profitability timeline and stick to the milestone targets. Investors love a good story, but Swiggy should bear in mind that these days, they’re quick to hit the sell button if earnings don’t meet estimates.

Bloomberg input

Food delivery and grocery major Swiggy’s initial public offering has been oversubscribed by 3.59 times after a tepid response in the first two days. 

The qualified institutional buyers (QIBs) portion was booked 6.02 times — the highest, NII portion was booked 41 per cent and the retail investor’s portion was subscribed 1.14 times. The employees’ book was subscribed 1.65 times. 

The ₹11,300-crore IPO comprises fresh capital raise of ₹4,499 crore and an offer for sale (OFS) of 17.51 shares worth ₹6,828 crore. Swiggy IPO price band has been set at ₹371-390 per share. 

The food delivery giant has raised ₹5,085 crore from institutional investors, including Fidelity and Blackrock, with sizeable participation from domestic investors.