CORPORATE
Swiggy gains 16.92% at close of its market debut as Sensex, Nifty bleed
- IBJ Bureau
- Nov 14, 2024
Swiggy gained 16.92 per cent at close on its market debut on Wednesday. The food tech unicorn bucked the broader market trend, with benchmark indices Sensex and Nifty slipping by over 1 per cent on Wednesday.
The Swiggy stock listed at Rs 420, a modest 7.7 per cent premium over its upper band issue price of Rs 390 on NSE. During the course of the trade, the stock began rising and closed the day at Rs 456 on NSE. The company’s shares registered a market capitalisation of about Rs 1.03 lakh crore.
Swiggy said that it had doubled the categories for quick commerce in the last 12 months, expecting solid growth in the next five years. The company plans to expand its geographical footprint and stores network for the Instamart business.
“We are expecting very solid growth for the next 3-5 years. We are expanding our geographical footprint, stores network for Instamart business,” Swiggy CEO Sriharsha Majety said after the listing ceremony.
“Despite a subdued market mood and sluggish response from overall investors, Swiggy’s listing surprised the market participants,” said Prashanth Tapse, the senior vice-president (research) of Mehta Equities.
“Despite having ceded some space to competition, it (Swiggy) is one of the fastest-growing consumption plays with multiple levers to move towards sustainable margins,” said JM Financial in a note.
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