Food delivery and Q-commerce giant Swiggy opened to an impressive debut run in the National Stock Exchange (NSE) on Wednesday, hitting a high of Rs 465.80. At market close, shares soared 16.92 per cent to Rs 456 for the day.
Around 11.30 crore shares changed hands at the end of the first day of trading. Morning trade saw the stock climb more 10 per cent, bringing the market valuation of the company to above Rs 100,000 crore. Swiggy's successful Rs 11,327-crore initial public offering (IPO) was fully subscribed on Friday last week by at least 3.59 times its issue.
The stock was listed at Rs 420 on the NSE versus its issue price of Rs 390, drawing comparisons to the hit 2021 debut of its rival Zomato.
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A welcome relief to a slipping stock market
Swiggy's impressive maiden trading session seemed to be a breath of fresh air in an otherwise bearish Wednesday. Both Nifty and Sensex were trading in the red, and the rupee was kept below 84.40 by the strengthening dollar in the morning amid inflation scare, FII selloff, and compounding global factors. Nifty 50 slipped 1.36 per cent to 23,559 and the BSE Sensex fell 1.25 per cent to around 77,691 at market close. Rupee close almost flat at 84.37 helped by PSU banks.
Swiggy, in its tenth year since operations began, now has more than 11 crore customers across its platforms. However, the Q-commerce brand recorded a negative cash flow from operations recently.
Swiggy's IPO proceeds are expected to be used to expand its dark store network, with the Indian market setting fertile ground for the Q-commerce sector, along with upgrading its technology, cloud infrastructure, and brand marketing.
Rival food delivery company Zomato saw its shares trade in the green in the morning session, inching up to a daily high of Rs 263.43 per share. However, it shed about 1 per cent through the day by the time markets closed.