Swiggy, India’s leading food and grocery delivery platform, made a highly anticipated debut on the stock market on November 13, 2024, with its Initial Public Offering (IPO) generating significant interest. The occasion was marked by a rare moment of goodwill between Swiggy and its long-time rival, Zomato, as they exchanged a heartwarming message on social media.
Zomato-Swiggy’s Jai-Veeru Moment
As Swiggy launched its IPO, Zomato took to social media to extend a rare public gesture of support. In a tweet on X (formerly Twitter), Zomato posted: “You and I… In this beautiful world,” followed by a heart emoji. The post featured a picture of delivery personnel from both companies standing together, gazing at the Bombay Stock Exchange (BSE) building, which displayed a banner reading “Now Listed Swiggy.” In response, Swiggy playfully replied, “It’s giving jai and veeru 😎✨,” referring to the iconic duo from Bollywood, symbolising their friendly rivalry.
Swiggy’s IPO opens strong despite mixed market sentiment
Swiggy’s IPO debuted with strong investor interest. The company’s stock opened at ₹420 on the National Stock Exchange (NSE), a 7.69% premium over the IPO price of ₹390. On the Bombay Stock Exchange (BSE), Swiggy’s shares listed at ₹412, representing a 5.64% premium over the offer price. The IPO aimed to raise ₹11,327 crore, marking India’s largest food delivery sector listing.
However, the broader market conditions were less favorable, as both the BSE Sensex and Nifty50 indices saw slight declines. Despite this, Swiggy’s IPO was oversubscribed by an impressive 3.59 times, signaling strong investor confidence in the company. Qualified Institutional Buyers (QIBs) led the charge, with their bids exceeding their allotment by 6.02 times. Non-institutional investors also showed considerable interest, oversubscribing their portion by 10.41 times.
A big win for Swiggy’s backers
Swiggy’s debut also proved to be a major success for its investors, with Prosus NV, its major backer and a partner of Tencent Holdings reportedly earning around $2 billion from the company’s market debut. This serves as a testament to the massive potential of India’s digital economy, particularly in the growing food delivery sector.
Swiggy IPO structure and Retail investment details
Swiggy’s IPO structure consisted of a fresh issuance of 11.54 crore shares worth ₹4,499 crore and an offer for sale of 17.51 crore shares valued at ₹6,828 crore. The bidding for the IPO was open from November 6 to November 8, 2024, with the allotments finalized on November 11.
For retail investors, the minimum investment required for participation in the IPO was ₹14,820, with a lot size of 38 shares. Employees were also offered additional incentives, with up to 750,000 shares available at a ₹25-per-share discount, encouraging greater participation.
