Swiggy Share Price: Food Delivery Giant Erases Early Gains, Slides 5% On The 2nd Day Of IPO Listing; BUY?

Swiggy shares trimmed early gains to trade in the red on the second day after listing on the stock exchanges. After initially rising over 7% in Thursday's early trading session, the stock later slipped into negative territory, quoted at Rs 450.25 per share on the NSE.

On its market debut Wednesday, Swiggy shares surged nearly 17% above the issue price of Rs 390. Opening at Rs 412 on the BSE, the stock quickly gained momentum, peaking at Rs 465.30 intraday, representing a 19.3% increase before closing at Rs 455.95, up 16.91%. Similarly, on the NSE, Swiggy shares debuted at Rs 420, climbing to an end-of-day price of Rs 456, a 16.92% rise over the issue price.

Swiggy's major competitor, Zomato, also experienced gains today as its inclusion in the NSE's F&O (Futures and Options) segment pushed its shares up over 3%. By midday, Zomato was trading at Rs 268.87 per share on the NSE, reflecting a 4.05% increase.

In an announcement following the listing ceremony, Swiggy's CEO, Sriharsha Majety, shared ambitious plans for the company's growth, especially in its quick-commerce division. Over the past year, Swiggy has doubled its product categories within the Instamart business, its rapid grocery and essentials delivery service. Majety stated that Swiggy is targeting "very solid growth for the next 3-5 years," with aggressive plans to expand its geographic reach and increase the number of Instamart locations to capitalize on rising demand.

On November 13, 2024, Swiggy, one of India's top platforms for online food delivery and quick commerce, made a modestly positive debut on the stock exchanges. The company's shares were listed at a premium, opening at Rs 420 per share on the National Stock Exchange (NSE), representing a 7.69% increase over the IPO price of Rs 390. On the Bombay Stock Exchange (BSE), Swiggy shares started at Rs 412, reflecting a 5.6% premium. Initial trading enthusiasm drove the stock to an intraday high of Rs 449 on the NSE, marking a 15.12% rise, and briefly pushing Swiggy's market valuation above Rs 1 lakh crore.

Swiggy's IPO raised Rs 11,327 crore, achieving full subscription on the final day with an overall subscription rate of 3.59 times. Priced within a range of Rs 371-390 per share, the stock's initial performance exceeded expectations, especially given the low grey market premium (GMP) observed before listing.

Swiggy operates within India's rapidly growing online food delivery sector, which expanded from Rs 11,200 crore in 2018 to Rs 64,000 crore in 2023. Projected to reach between Rs 1,40,000 crore and Rs 1,70,000 crore by 2028, the market growth is propelled by rising incomes, urbanization, and evolving lifestyle preferences.

Despite these positive projections and the initial market excitement, Swiggy shares experienced further pressure, slipping nearly 5% to Rs 435.10 per share on the NSE by 1:50 pm. Swiggy's performance post-listing, however, still holds a 17% gain from the issue price.