[Listed]Swiggy Limited Debuts on Public Markets with Moderate Listing Gains Amid Quick Commerce Expansion

Swiggy Limited, a prominent player in the Indian online food delivery and quick commerce sector, made its debut on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on November 13, 2024. The company listed at a premium of approximately 7.7 percent over its issue price of 390 rupees, opening at 420 rupees on the NSE and 412 rupees on the BSE. The initial public offering (IPO) raised a total of 11,327 crore rupees, comprising a fresh issue of shares worth 4,499 crore rupees and an offer for sale (OFS) of 6,828 crore rupees.

The public issue was subscribed 3.59 times during its three-day bidding window. Qualified Institutional Buyers (QIBs) led the subscription, bidding 6.02 times the allotted quota, while the retail investor category saw a subscription of 1.14 times. Non-Institutional Investors (NIIs) subscribed to 0.41 times their allocation. Proceeds from the fresh issue are slated to be utilized for expanding the dark store network for its quick commerce segment, Instamart, investing in technology and infrastructure, and funding general corporate purposes.

Operationally, Swiggy continues to navigate a highly competitive landscape dominated by rivals such as Zomato and Zepto. While Swiggy has demonstrated robust revenue growth, rising from 8,265 crore rupees in FY23 to 11,247 crore rupees in FY24, the firm remains loss-making. Net losses for the fiscal year ended March 31, 2024, stood at 2,350 crore rupees, narrowing from a loss of 4,179 crore rupees in the preceding fiscal year. Industry analysts note that future profitability will heavily depend on scaling the quick commerce business and improving average order values.