Swiggy IPO: Bumper Listing As Shares Zoom 15% On Debut - Details

Swiggy shares made a spectacular debut on the stock exchanges on November 13, 2024, surging 15 per cent above its issue price. The strong investor interest pushed the company's market valuation briefly above the Rs 1 lakh crore mark.
The online food delivery and quick commerce giant's initial public offer ( IPO ) was fully subscribed, indicating strong demand from both retail and institutional investors. The successful listing reflects the growing appetite for tech stocks and the optimism surrounding India's booming digital economy.

However, the initial euphoria soon gave way to a more cautious sentiment. By mid-morning, the stock had declined by nearly 5 per cent, indicating some investor hesitation. Analysts believe that the initial volatility could be attributed to various factors, including global market conditions and profit-booking by early investors.

Mixed Analyst Views
While the strong listing reflected positive sentiment towards the company's growth prospects, analysts have offered mixed opinions. Macquarie initiated coverage on Swiggy with an "underperform" rating, citing concerns about its path to profitability. The brokerage firm expressed doubts about the company's ability to sustain its high growth rates and achieve profitability in the near future.

On the other hand, analysts at StoxBox and Anand Rathi have expressed optimism about the company's long-term potential. They believe that Swiggy's strong brand recognition, extensive network, and focus on innovation position it well to capitalise on the growing online food delivery and quick commerce market.

A Booming Market
Swiggy operates in India's rapidly growing online food delivery and quick commerce sectors. The online food delivery market has witnessed significant expansion, driven by factors like rising incomes, urbanisation, and changing consumer preferences. The company's focus on expanding its Instamart service and competing with rivals like Zomato and Blinkit positions it well to capitalise on these trends.

Despite the initial volatility, Swiggy's strong debut and the underlying growth potential of the online food delivery and quick commerce sectors make it an intriguing investment opportunity for long-term investors. However, investors should exercise caution and conduct thorough research before making investment decisions.