As Swiggy’s food delivery and quick commerce company leads India’s market with a debut at₹456 on Wednesday—an impressive 16.92% hike from its issue price of ₹390-it has notched a very important milestone: the ₹1 lakh crore mark, also a goal for any Indian startup, as the IPO saw much hype.
The issue price on the NSE was ₹420 for company shares, reflecting a 7.69% appreciation, while on BSE it opened at ₹412 with a rise of 5.64%. This could be seen as a reflection of the market appetite, where the much-watched initial public offer for Swiggy received an over-subscription of 3.59 times. The retail investor category witnessed a subscription of 1.14 times, and the employee reserved portion garnered 1.65 times bidding.
Swiggy raised ₹11,327 cr through the public offer comprising an upsized fresh issue of ₹4,499 cr through a base prospectus regulator-approved Offer For Sale of ₹6,828 cr. The issue price ranged between ₹371-390 per share and made an attractive opportunity for all institutional investors, as well as for retail investors.
Unlocking an estimated ₹9,000 crore of Employee Stock Options (ESOPs) that will make around 500 Swiggy employees join the ‘Crorepati’ club, this becomes the largest ESOP payout by India’s startup sector, matching the major payout of Flipkart owned by Walmart.
Now with its stocks listed on the stock market, after this optimistic outing by CEO Sriharsha Majety, it seems that he is quite sanguine about this company’s future and has certain expectations over “very solid” growth over the next 3-5 years. He here added that Swiggy is presently an organization that is majorly concentrated upon achieving more geographical footprint and enhancing the stores network for its Instamart business.
Earnings Swiggy plans to deploy the fresh proceeds towards fresh issues relating to improving technology and cloud infrastructure, building brand presence, running promotions, debt servicing, potential acquisitions, and general corporate purposes, as envisaged in the draft documents filed by the company.
After a successful IPO and positive forecast from the leadership of this company, Swiggy is now moving forward to advance growth in fast-evolving markets for foods and quick-commerce.
ALSO READ: Reliance Unveils Tira’s Flagship Beauty Store At Jio World Plaza – Are You Ready?
