Swiggy Stock Price Today :The IPO of online food delivery company Swiggy has been listed in the stock market today on 13th November. Despite the weak trend of the market, Swiggy’s stock has made a positive entry in the market. Swiggy’s stock was listed on BSE at Rs 412, while the IPO price was Rs 390. In this sense, investors got 6 percent return on listing. However, there were indications of listing from the gray market at only 1 percent premium. This IPO was open for investment from 6 to 8 November 2024. The price band for the IPO was Rs 371 to Rs 390 per share, while the size was Rs 11327 crore. Top brokerage houses are positive about the company’s outlook.
Subscribed 3.59 times
Swiggy’s IPO got a decent response from investors. This IPO was subscribed 3.59 times overall. The reserved 35% share for retail investors in the IPO was filled 1.14 times. The reserved 50% portion for QIB was filled 6.02 times. Whereas the reserved 15% share for NII was filled 0.41 times.
How is the company’s outlook?
Brokerage house SBI Securities has given some positive factors regarding Swiggy. Like the company is among the leaders in the high-frequency hyperlocal commerce segment. The network of users is continuously increasing. Strong brand recall is also a positive factor. The company is the most valuable brand in the Consumer Technology and Services Platform category. The company has an experienced professional management team. However, user base risk, delivery partner retention risk, technology risk are also associated with it.
Aditya Birla Capital has enumerated some risk factors. Like Swiggy has tough competition with some players in the market. Whereas Qcom (Instamart) business is a cash burning business with a negative CFO. The company has reduced its valuation from $15 billion to $11.3 billion before the IPO. FMCG distributors have raised concerns with CCI about QCom’s sustainability and unfair practices, which if action is taken could hamper growth.
What was the rating of the brokerage house?
SBI Securities: Subscribe for long term
KR Chouksey: Subscribe
Bajaj Broking: Subscribe for long term
Arihant Capital: Subscribe only for aggressive investors
Aditya Birla Capital: Avoid
Deven Chowksey: Subscribe
Direct competition from Zomato
Swiggy is headquartered in Bangalore and operates in more than 580 cities. It has over 200,000 restaurant partners across India; Swiggy was started in the year 2014. There are more than 1,50,000 restaurants across the country on the company’s platform. Apart from food delivery, the company is also in the business of quick commerce. She does the business of quick commerce under the name of Instamart.
It has direct competition with Zomato. In Instamart’s business, it competes with Zomato’s subsidiaries Blinkit and Zepto. Apart from this, the company also has competition from Amazon, Tata Group’s BigBasket and Flipkart. Zomato launched its IPO in July 2021 with an issue size of Rs 9375 crore and it was subscribed more than 35 times.
(Disclaimer: The advice to invest in stocks has been given by the brokerage house. These are not the personal views of Financial Express. There are risks in the market, so take expert opinion before investing.)
