Food and grocery delivery company Swiggy made its stock market debut on Wednesday at nearly an 8 per cent increase on its initial offering price of 390 rupees.
The company’s shares debuted on the NSE at Rs 420, registering a 7.69 per cent increase from the issue price. Meanwhile, on BSE, the stock was listied at Rs 412, showing a 5.64 per cent increase.
Additionally, during early trading hours, Swiggy’s market capitalisation reached Rs 89,549.08 crore.
The company’s Rs 11,327-crore public offering achieved full subscription by Friday’s closing, with the final subscription rate reaching 3.59 times the initial offering. Retail investors subscribed to their portion 1.14 times, while the portion reserved for employees saw 1.65 times bidding.
The share sale was conducted within a price band of Rs 371-390 per share. The IPO comprised a fresh issue worth Rs 4,499 crore and an Offer-For-Sale component of Rs 6,828 crore.
The IPO stands as a significant wealth-generating milestone in the startup landscape, with approximately 500 employees poised to become part of the ‘Crorepati’ club. The offering will unlock unlock Rs 9,000 crore through employee stock options (ESOPs).
The ESOP disbursement by Swiggy will be amongst the most substantial in India’s startup sector, comparable to the considerable $1.4-1.5 billion payout by Walmart-owned Flipkart.
Read more: 9 Swiggy execs who will become richer by Rs 50 crore or more
Following Swiggy’s stock market debut, CEO Sriharsha Majety expressed optimism about “very solid” growth over the next 3-5 years. “”We are expecting very solid growth for the next 3-5 years. We are expanding our geographical footprint, stores network for Instamart business,” said Majety.
According to the draft documents, the fresh issue proceeds are earmarked for enhancing technology and cloud infrastructure, strengthening brand presence, promotional activities, debt settlement, potential acquisitions and general corporate requirements.