Swiggy Shares Close 17% Higher On Dalal Street

The share price of Swiggy Ltd. listed on the BSE at Rs 412, marking a 5.64% premium from its issue price of Rs 390 on Wednesday. It debuted at Rs 420 on the National Stock Exchange at a 7.7% premium.

It ended at Rs 455.95 increasing by 16.91%. The stock increased by 19.30% intraday to Rs 465.30.

On the day Swiggy listed its shares on the stock exchanges, its market capitalization surged past Rs 1 lakh crore.

The IPO of the food-delivery company was subscribed 3.59 times on its final day of bidding led by institutional buyers.

Swiggy's Rs 11,327.4-crore IPO comprised a fresh issue of 11.5 crore shares valued at Rs 4,499 crore and an offer for sale of 17.5 crore shares amounting to Rs 6,828.4 crore. The food-delivery business raised Rs 5,085 crore by allocating 13.03 crore shares to high-profile anchor investors, including Fidelity and Blackrock, with sizeable participation from domestic investors.

Ashutosh Sharma, India Head of Investment at Prosus and Swiggy's largest shareholder said Swiggy's shareowners remain enthusiastic about the newly-listed company due to its long journey and the founder's leadership. He added that he has no plans for further disinvestment.

Founded in 2014, Swiggy offers an all-in-one app for food delivery, grocery shopping, and household essentials—all accessible through its extensive on-demand network.

Swiggy’s operations span four main areas:

• Food delivery: Ordering and delivery of restaurant food.

• Out-of-home consumption: Dining reservations and events.

• Quick commerce: On-demand delivery of groceries and household goods through Instamart.

• B2B supply chain and distribution: Logistics and warehousing solutions for wholesalers and retailers.

The company also experiments with innovations on its platform, with initiatives such as Swiggy Genie, Dineout, and more.

Swiggy's revenue in the quarter ended June 2024 stood at Rs 3,222.2 crore. In the fiscal ended March 31, 2024, it reported a revenue of Rs 11,247 crore, up 36.1% from Rs 8,264.59 crore in fiscal 2023.

The company saw an improvement in losses, reducing from Rs 4,275.74 crore in fiscal 2023 to Rs 2,208.01 crore in fiscal 2024. Its loss in the June quarter of this fiscal stood at Rs 611 crore.

Swiggy's earnings were primarily driven by food delivery, which contributed Rs 1,729.63 crore or 53.7% of the total revenue in the June quarter. Quick commerce business followed with a mop-up of Rs 403.3 crore or 12.5% of the revenue, followed by out-of-home consumption segment, which accounted for only Rs 46.7 crore or 1.4%.