Shares of Swiggy, the newly-listed food delivery and quick commerce giant, saw a decline of nearly 6% on the second day of trading on Thursday. The stock dropped 5.72% to ₹429.85 on the BSE. During intraday trading, it fell further, losing 8.18% to touch ₹418.65. On the NSE, Swiggy’s shares closed at ₹430.70, down by 5.54%.
Market Valuation Takes a Hit
The dip in share prices resulted in a significant erosion of Swiggy’s market valuation, with a loss of ₹5,842.35 crore. The company’s valuation dropped to ₹96,219.66 crore, down from the previous day’s peak. On its debut day, Swiggy’s market capitalization had briefly crossed the ₹1 lakh crore mark.
Swiggy’s initial public offering (IPO) was valued at ₹11,327 crore and saw strong investor interest, being fully subscribed on the final day of the share sale. The IPO was subscribed 3.59 times. The share price range for the IPO was set between ₹371 and ₹390 per share, with the stock initially listing at a premium of nearly 17% over the issue price of ₹390.
Breakdown of IPO Proceeds
The IPO included a fresh issue of shares worth ₹4,499 crore and an Offer-For-Sale (OFS) worth ₹6,828 crore. According to Swiggy’s draft prospectus, the company plans to use the funds raised from the fresh issue for various purposes, including investments in technology and cloud infrastructure, brand marketing and business promotion, debt repayment, as well as for inorganic growth and general corporate needs.
