Swiggy, the food and grocery delivery platform based in Bengaluru, has secured approval from market regulator Sebi for its highly anticipated IPO. This development has set the stage for an exciting period ahead for the company’s shares in the unlisted market.
Following shareholder approval for an IPO in April, Swiggy’s stock has witnessed significant interest in the unlisted market, resulting in a substantial increase in share prices, according to an ET report.
From July to September, the company’s shares surged by nearly 40%, rising from around Rs 355 to approximately Rs 490. Consequently, Swiggy’s market value experienced a remarkable growth, soaring from Rs 70,000 crore to Rs 1.16 lakh crore within just two months.
Swiggy plans to raise approximately Rs 11,000 crore through the IPO, which will include a fresh equity sale of Rs 3,750 crore and an offer-for-sale (OFS) component of up to Rs 6,664 crore. Despite competition from other prominent players in the unlisted market, such as NSE and CSK, Swiggy has maintained a strong position and is considered one of the top stocks that investors are eager to acquire before its public debut.
The heightened demand for Swiggy shares can be attributed to the company’s impressive performance, with operating revenue growing by 36% to Rs 11,247 crore and net losses decreasing by 44% to Rs 2,350 crore in the fiscal year 2024.
“Swiggy’s journey in the unlisted market has been impressive. its share prices started trading at Rs 340 and currently trading in range from Rs 480-490. As expectations for a public listing have grown, investor interest in Swiggy’s unlisted shares has surged. As of August 26, the share price rose to Rs 418 and has now reached Rs 490, reflecting significant demand and momentum in the last month,” said Krishna Patwari, Founder & MD of Wealth Wisdom, which tracks the unlisted market.
The recent impressive performance of Swiggy’s competitor, Zomato, in the stock market has also contributed to the rising share prices of Swiggy in the unlisted market.
Zomato has more than doubled investors’ wealth year-to-date, with a 129% increase. “Swiggy stands out as a strong investment opportunity in India’s unlisted market due to its growing trade volume and increasing demand. With its potential for significant growth, it is considered one of the top shares to trade in the unlisted market,” Patwari noted.
