Swiggy Makes a Strong Stock Market Entry, Lists at 7.69% Premium Making Big Profits for Investors

Manvendra HadaNovember 15, 2024

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Three points you will get to know in this article:

Swiggy opens at Rs 420 per share on NSE, a 7.69% premium on its IPO price of Rs 390.
IPO was oversubscribed by 3.6x, with Rs 4,499 Cr of fresh issue and OFS of 17.51 lakh shares worth Rs 6828 Cr.
Prosus makes a $2.12 Bn (over 18000 Cr) profit with Swiggy’s IPO.

Swiggy Debuts Stock Market With a Bang, Makes Profit For IPO Investors

Swiggy, a foodtech leader, made its stock market debut today, opening at Rs 420 per share on the National Stock Exchange, a 7.69% premium over its IPO price of Rs 390.

Swiggy’s IPO was oversubscribed by 3.6 times, with Rs 4,499 crore of fresh issue and an offer for sale (OFS) of 17.51 lakh shares worth Rs 6828 crore at a price band of Rs 371-390 per share.

How Much Did Swiggy’s Investors Earn From Swiggy IPO?

Swiggy has been one of the best investments for Prosus, Accel, Elevation, Tencent, and other investors. According to the DRHP, Prosus invested around Rs 9,055 crore ($1.07 billion) in Swiggy and earned a total of Rs 26,927 crore ($3.2 billion) in the IPO, resulting in a $2.12 billion profit.

Tencent, on the other hand, invested Rs 1,343 crore and earned Rs 3,166 crore, resulting in a 2.35x return. Meanwhile, SoftBank and Tencent invested approximately Rs 6,743 crore ($800 million) and Rs 3,165 crore ($377 million), respectively.

Aside from benefiting investors, the Swiggy IPO would deliver significant rewards to 500 employees, who may get over Rs 9,000 crore in ESOP installments.

The estimate is based on the issue price of Rs 390; however, it may vary depending on stock exchange price changes.

Swiggy Market Cap After IPO

Swiggy is now trading at Rs 445.45 per share and has a market capitalization of Rs 99,745 crore, or $11.87 billion. This represents an 18.4% increase over its previous valuation of $10 billion at the time of filing its draft red herring prospectus.

Swiggy’s CEO, Sriharsha Majety, forecasts significant development for the company. “We anticipate very strong growth over the next 3-5 years. “We are expanding our geographic footprint and store network for our Instamart business,” Majety stated following the listing ceremony.

Swiggy’s archrival, Zomato, has a market capitalization of $27.23 billion, which is more than double Swiggy’s present market capitalization.

Swiggy received more than $600 million in funding prior to the IPO from a group of anchor investors that included BlackRock, Fidelity, SBI Mutual Fund, ICICI Prudential Mutual Fund, HSBC, Nomura, BNP Paribas, and Allianz Global.