Swiggy Shares Jump 15% on First Day of Trading, Market Cap Nears ₹1 Lakh Crore
Swiggy shares made a strong stock market debut, opening at a 7.69% premium on the NSE and reaching an intraday high of ₹449, pushing its market cap close to ₹1 lakh crore. Despite early volatility, experts recommend holding Swiggy for long-term growth due to its position in India's booming online food delivery and quick commerce sectors.
Swiggy shares made a promising debut on the stock market today, with prices rising significantly above expectations. The stock, which opened at ₹420 per share on the National Stock Exchange (NSE) – a 7.69% premium over its initial public offering (IPO) price of ₹390 – quickly saw active trading. On the Bombay Stock Exchange (BSE), Swiggy listed at ₹412, a 5.6% increase over its IPO price, and later touched ₹419.95, bringing its market valuation close to the ₹1 lakh crore milestone.
During the early trading session, Swiggy’s share price hit an intraday high of ₹449 on the NSE, gaining an impressive 15.12%. Despite initial concerns in the grey market, Swiggy’s debut outperformed expectations. However, shortly after listing, the stock saw a drop of about 5% to ₹400.45 by 10:20 am, reflecting a 4.65% decline, as early trading showed mixed reactions from investors amid broader market fluctuations.
Swiggy’s ₹11,327 crore IPO was fully subscribed on the final day, with a 3.59 times oversubscription. The IPO price range was set between ₹371 and ₹390 per share.
Financial experts suggest Swiggy is positioned well for long-term growth. Akriti Mehrotra, a research analyst at StoxBox, recommends holding Swiggy shares for medium to long-term gains. Narendra Solanki, Head of Fundamental Research at Anand Rathi, believes Swiggy’s expansion in quick commerce and its fair IPO pricing make it a good long-term investment.
Swiggy operates in India’s rapidly expanding online food delivery and quick commerce sectors, which have grown from ₹112 billion in 2018 to ₹640 billion in 2023 and are projected to reach between ₹1,400 and ₹1,700 billion by 2028. This growth is driven by higher incomes, urbanization, and changing lifestyles, especially in smaller cities where demand for convenience is on the rise. Swiggy, a key player in these sectors, is well-positioned to benefit from these trends.
(with input from Moneycontrol)
What's Your Reaction?
