Online food delivery platform Swiggy made its debut on the stock market today, Wednesday. The listing brought smiles to investors. It was listed at ₹412 on the BSE with a premium of 5.64%. On the NSE, it listed at ₹420, reflecting a 7.69% premium. This immediate listing has already provided profits to investors. Experts believe the listing is somewhat weak, but considering the declining market, it’s actually quite good. Therefore, it’s advisable to hold onto these shares for now and not rush to sell. They could yield good returns in the near future.The price band for this share was set between ₹371 and ₹390, with the final price set at ₹390. Since it listed at ₹412 on the BSE, investors gained ₹22 per share.
Investors Did Not Show Strong Response
The response from investors wasn’t particularly strong. The IPO was open for investment from November 6 to November 8. The first two days saw a lukewarm response from investors. However, on the third and final day, institutional investors came to the rescue, leading to a subscription rate of 3.6 times.
In the grey market, this IPO also did not receive a favorable price. On the day the price band was set, its Grey Market Premium (GMP) was ₹25. Since then, it has been on a downward trend. Just a day prior, on November 12, the GMP dropped to ₹2 during the day and then to zero by evening. Based on the GMP, a flat listing was expected, meaning no profit or loss. However, today defied those expectations, as it listed with a profit.Swiggy’s IPO has been one of the more expensive ones in the country. Just last month, Hyundai launched an IPO that was the most expensive in India to date, with an issue size of over ₹27,000 crore. In comparison, Swiggy’s IPO had an issue size of over ₹11,000 crore, making it the second most expensive IPO this year.
