The food delivery giant Zomato extended a warm welcome to Swiggy as it made its stock market debut on November 13, 2024. The company shared healthy competition through social media , that highlighted the friendly rivalry between the two leading food tech companies in India.
Zomato’s post on Instagram and X (formerly known as Twitter) featured an image of Swiggy and Zomato delivery personnel standing together in front of the iconic Bombay Stock Exchange (BSE) building. The post was captioned, “You and I… In this beautiful world,” the post reflected positivity and mutual respect for both brands. The banner in the background proudly announced Swiggy’s listing, “NOW LISTED: SWIGGY”. “it’s giving jai and veeru 😎✨,” Swiggy replied.
Swiggy’s IPO was a great success, with shares opening at Rs 420 on the NSE or 7.69% over the IPO price of Rs 390. The IPO, which raised Rs 11,327 crore, saw huge interest from institutional investors, particularly Qualified Institutional Buyers (QIBs), who subscribed to the issue 6.02 times. Despite a moderate retail subscription of 1.14 times and lower interest from non-institutional investors (0.41 times subscription), the overall oversubscription stood at 3.59 times.
The friendly nod from Zomato, a company that has long competed with Swiggy in the Indian market, showcases a sense of unity and respect within the industry. This moment was not just about business but also about acknowledging each other’s hard work and achievements.
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Swiggy’s IPO is the 50th mainboard IPO on the NSE this year. It marks another milestone in the investor interest in India’s tech and startup ecosystem. The listing marked excellent returns for the major backers, while it turned out to be the moment of celebration for the employees of the company, many of whom may have turned into crorepatis.
Despite the broader market pressure, with the BSE Sensex down by over 170 points and the Nifty50 slipping 61 points in early trade, Zomato shares experienced a near 1% rise, which reflected investor confidence in the company’s long-term potential.
This gesture by Zomato to Swiggy exemplifies the spirit of collaboration and healthy competition that fuels innovation in the food delivery industry in India. It is a reminder that even in business, mutual respect and encouragement make an industry thrive.