Swiggy made a splash on the stock market today with shares debuting at Rs 420 on the NSE, up nearly 8% from its IPO price of Rs 390. This strong start was unexpected, especially given the muted grey market expectations. On the BSE, Swiggy opened at Rs 412, gaining about 5.6% over the IPO price, and soon rose to Rs 419.95, marking a 7.67% increase in early trading. This positive reception boosted the company’s market cap to Rs 89,549.08 crore right out of the gate.
Despite the strong debut, Swiggy’s stock experienced some ups and downs. After opening at a premium, the share price dipped nearly 5%, hitting Rs 400.45 on the NSE around 10:20 am—a 4.65% drop. This early volatility highlights mixed investor sentiments in the current, often-unpredictable market.
Swiggy’s Rs 11,327 crore IPO concluded with a healthy 3.59x subscription, despite the IPO’s price range of Rs 371-390 being seen as fairly high. While some analysts are upbeat about Swiggy’s prospects, others, such as the global brokerage firm Macquarie, are more cautious. Macquarie initiated coverage on Swiggy with an ‘underperform’ rating, setting a price target of Rs 325 per share, warning of profitability challenges.
However, there’s still plenty of enthusiasm for the stock among long-term investors. Akriti Mehrotra, a Research Analyst at StoxBox, advises holding Swiggy shares for a medium to long-term investment. Narendra Solanki of Anand Rathi Shares and Stock Brokers echoes this sentiment, noting that Swiggy’s fair pricing could make it an attractive long-term investment, especially as it captures more of the expanding quick-commerce market.
Swiggy has a significant foothold in India’s fast-growing online food delivery and quick-commerce sectors. The food delivery market alone surged from Rs 112 billion in 2018 to Rs 640 billion in 2023 and is projected to climb to around Rs 1,400-1,700 billion by 2028. This growth is fueled by changing lifestyle trends, higher incomes, and increased urbanization. For instance, just as busy professionals in metro cities rely on Swiggy for everything from last-minute dinners to quick grocery runs, demand is also surging in smaller cities, where consumers increasingly prioritize convenience over price.
Swiggy’s investment in Instamart, its quick-commerce offering, could be a game-changer. With Instamart, the company is bridging the gap between traditional grocery shopping and on-demand convenience, directly challenging rivals like Zomato and Blinkit. So, whether it’s a busy student needing essentials delivered within minutes or a family preparing an impromptu celebration, Swiggy’s expanding reach and capabilities position it well for continued growth.