Swiggy tops expectations with best major listing in a decade
Swiggy on Wednesday listed at a 5.6% premium to its initial public offer (IPO) price of ₹390, making it the first company with issue size of over ₹10,000 crore in the past decade to have listed above the offer price.
The stock closed 17% above its issue price at ₹455.95 in a weak market, surpassing analysts' expectations of a tepid debut. The company's market capitalisation at close on Wednesday was ₹1.02 lakh crore.
Brokerage Macquarie initiated coverage on the stock with an 'underperform' rating and a target price of ₹325, implying a 28.7% downside from Wednesday's close. The firm said Swiggy has a 'long and winding road to profitability.'
«We are very excited for the next wave of our journey as a company,» said Sriharsha Majety, co-founder and CEO of Swiggy, in a press conference following the listing ceremony at NSE. «As for the profitability, even in the build-up to the IPO, we have talked about how the food delivery business has already gotten profitable and we expect that to continue at a steady clip.»
In the first quarter of FY25, Swiggy posted operating revenue of ₹3,222 crore, up 34% from the same period a year ago. Its net loss widened to ₹611 crore in April-June from ₹564 crore a year ago. Rival Zomato's consolidated net profit soared 389% to ₹176 crore in the second quarter of FY24, compared with ₹36 crore a year ago. Revenue from operations rose 68% to ₹4,799 crore in the reporting period.
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