Swiggy gains 6.7% on IPO debut after $1.3 billion initial share sale
Company’s $1.3 billion IPO was subscribed over three times
Mumbai: Swiggy Ltd.'s shares rose in their Mumbai debut, signaling a vote of confidence for large initial public offerings in India.
The shares of the food-delivery firm listed at 416.20 rupees before climbing as high as 420.05 rupees. They were sold at 390 rupees, the top of the marketed range. The company's $1.3 billion share sale is the nation's second-largest listing this year after Hyundai Motor India Ltd.'s record $3.3 billion IPO.
The offering comes at a time when overseas funds have been dumping local shares on concerns about slower earnings growth. Initial demand for Swiggy's deal was subdued, but institutional demand on the final day drove it to a strong close.
The listing gain bucks the recent trend of poor showing by large first-time share sales in India. Large IPOs have struggled on debut, with those raising more than $1 billion since 2019 falling about 3% on average on their first trading day, according to data compiled by Bloomberg.
Hyundai Motor India's shares dipped on debut last month, and are trading 12% below the IPO price.