2024-09-27 08:42:00
New Delhi: The much-awaited IPO of food and grocery delivery platform Swiggy worth around Rs 11,000 crore has received approval from market regulator SEBI. Due to this, its shares are showing a lot of growth in the unlisted market. Ever since the company received shareholders’ approval to launch an IPO in April this year, investor interest in its shares has increased in the gray market. Swiggy shares, which were trading at around Rs 355 in July this year, have gained almost 40% in just two months. At present its price in the unlisted market is around Rs 490. The market value of this company, invested by SoftBank and Prosus, has also increased from Rs 70,000 crore to Rs 1.16 lakh crore in just two months. The current lot size of Swiggy shares in the unlisted market is around 100. Experts say that due to the company’s performance the demand for its shares has increased. The company’s revenue increased by 36% to Rs 11,247 crore in financial year 2024 while net profit declined by 44% to Rs 2,350 crore. About 200,000 pre-IPO shares have been actively traded in the unlisted market, according to ET. Celebrities like Rahul Dravid, Amitabh Bachchan and Karan Johar have bought stake in the company. It is believed that this number may increase before the company’s IPO in November.
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Why is the price increasing
Krishna Patwari, Founder and MD, Wealth Wisdom, which tracks the unlisted market, said that Swiggy’s journey in the unlisted market has been impressive. Its share price started from Rs 340 and currently it is trading between Rs 480-490. As the expectations of listing have increased, investor interest in Swiggy’s unlisted shares has increased. By August 26, the share price rose to Rs 418 and has now reached Rs 490.
Swiggy is planning to raise around Rs 11,000 crore through IPO. This includes fresh equity sales worth Rs 3,750 crore and offer-for-sale worth up to Rs 6,664 crore. The recent impressive stock performance of rival company Zomato has also helped Swiggy’s share prices in the unlisted market. Zomato shares have gained 129% so far this year.