November 13, 2024: Swiggy, the popular food delivery giant, made a positive debut on the Indian stock exchanges today, opening at ₹420 per share on the NSE, reflecting a 7.69% premium over its issue price of ₹390. On the BSE, the stock opened at ₹412 per share, representing a 5.64% gain from the issue price. However, despite the initial gains, Swiggy’s share price slipped into the red shortly after opening, with market watchers now eyeing the company’s post-listing performance closely.

The share allotment process for Swiggy’s much-anticipated Initial Public Offering (IPO) was completed on November 11, with shares credited to investors’ demat accounts by November 12. The company’s IPO, which opened for subscription last week, saw a mixed response from investors. Initially, the interest was tepid, but demand picked up towards the end, particularly from institutional investors. The final subscription rate was recorded at 3.59 times on the last day of bidding, indicating stronger backing from Qualified Institutional Buyers (QIBs).

Despite this late surge in demand, analysts had forecasted a flat to negative listing, due to low subscription interest from Non-Institutional Investors (NIIs) and retail investors. Early indications seem to support these predictions, with Swiggy's share price fluctuating in a range of 5-10% below its issue price in early trading hours.

Swiggy's IPO arrives at a time when global funds have been selling off domestic stocks amid concerns over declining earnings growth. While the offering has received positive attention from some corners of the market, the overall sentiment towards Indian equities remains cautious. Analysts have pointed out that the market conditions could weigh heavily on the stock’s performance in the short term, particularly given the company’s heavy reliance on a competitive and volatile sector like food delivery.

Founded in 2014, Swiggy has grown rapidly to become one of India’s leading online food delivery platforms, with its user-friendly app providing access to a variety of services, from meal deliveries to groceries and household items through its Instamart service. However, the company is still striving for profitability amid fierce competition and rising operational costs.

As the stock settles into the market, all eyes will be on Swiggy’s financial performance and its ability to maintain investor interest in the coming weeks. Analysts believe that the company’s long-term prospects will hinge on its ability to scale efficiently and address market challenges, including increasing competition and pressure on margins.