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Swiggy IPO Listing: The shares settled at Rs 412 apiece in pre-open trade, which is 7.69 per cent gain.
Swiggy IPO Listing.
Swiggy on Wednesday made a marginally higher listing over its issue price. The shares were listed at Rs 412 apiece on the BSE as compared with the issue price of Rs 390, which is an 8 per cent premium.
The shares had settled at Rs 412 apiece in pre-open trade, which is 7.69 per cent gain.
The price band of the Swiggy IPO was fixed at Rs 371 and Rs 390 apiece.
The initial public offering, which was opened for public subscription between November 6 and November 8, received a 3.59 times subscription garnering bids for 57.53 crore shares as against the 16.01 crore shares on offer.
Swiggy IPO Listing: What Should Investors Do Post-Listing?
Shivani Nyati, head of wealth at Swastika Investmart, said this subdued investor sentiment as indicated by its low GMP is likely influenced by the company’s continued losses, despite steady revenue growth.
“The IPO’s valuation, while appearing reasonable based on certain metrics, presents a challenge due to negative earnings. Additionally, the current volatile market conditions may further impact the listing performance,” he added.
Given these factors, a cautious approach is recommended. Investors with a high-risk tolerance and a long-term perspective may consider the IPO, but it’s essential to acknowledge the potential risks associated with the company’s current financial position and the broader market uncertainties, she said.
Prashanth Tapse, senior vice-president (research) and research analyst at Mehta Equities, also recommended risky investors to hold Swiggy’s shares for the long term.
“For allotted investors, one should not expect any kind of listing gains. Hence, only risky investors should consider the company to hold for the long term, despite knowing short-term volatility and competitive pressures in the sector. For non-allottees, we advise to wait and watch for the price to settle and revisit the space with better discounted opportunity,” Tapse added.
Despite being the second-largest e-commerce and food delivery player, it received a sluggish response from overall investors. While on a consolidated basis, the overall subscription figures look good, but Day-3 Qualified Institutional Buyers (QIB) investors supported Swingy ipo helping it to successfully sell out, which looks similar trend to Hyundai Motors IPO, he said.
