Swiggy shares surge 9% after listing, market cap crosses Rs 1 lakh crore
Swiggy surged 9% to Rs 449 on BSE in Wednesday's trade after making its Dalal Street debut at Rs 412. Meanwhile, the company’s market capitalization crossed Rs 1 lakh crore mark.
Swiggy’s muted debut on Dalal Street was marked by a small premium of 8% over its issue price. Investors are refraining from making bold bets on the stock since the company is currently loss-making at the consolidated level and is believed to be at least 2-3 years away from PAT level break-even.
“The listing reflects a degree of optimism about Swiggy's long-term growth prospects, driven by its strong brand recognition, extensive network, and dominant position in the food delivery market, said Shivani Nyati, Head of Wealth at Swastika Investmart Ltd, adding that “however, the company's continued losses and the challenging market conditions may temper investor enthusiasm in the long term.”
Also read | Swiggy shares list at 8% premium over IPO price
Investors should approach Swiggy with a balanced perspective, considering the potential for future growth and the associated risks and those who are holding it may keep a stop at around the issue price, Nyati added.
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