Swiggy Shares Take Hit in Just 24 Hours After Strong Debut in Bearish Market, Price Down 7.54% To Close at INR 421.60

Mumbai, November 14: Online food delivery and quick commerce company Swiggy shares slipped 7.54 per cent to close at Rs 421.60 on Thursday — just 24 hours after its strong public debut in a bearish market — due to profit booking on higher level. During the intra-day trading, shares of Swiggy touched Rs 489 on higher side and Rs 418 on the lower side. Trading volume and value in the trading session stood at 5.61 crore and Rs 2,522 crore on the NSE, respectively.

Swiggy’s shares were listed in the stock market on Wednesday at a price of Rs 420 with a premium of 7.69 per cent. Buying was seen in the stock after the listing and at the end of trading, it closed at Rs 464, up 18.97 per cent. The Rs 11,327 crore IPO of the online food delivery company was open for retail investors between November 6 and 8. The IPO received a mixed response from investors and was subscribed more than 3.50 times. Swiggy IPO: Prosus and Tencent Earn Billions in Food Delivery Giant’s Initial Public Offering.

According to Bajaj Broking, there is a big risk in Swiggy’s business because of tough competition from Zomato, Zepto and new companies coming in the market. “While there’s optimism about Swiggy’s potential to capture further market share in India’s evolving food delivery and quick commerce segments, the road to profitability may be bumpy,” said Bajaj Broking Research. Swiggy has shown impressive growth potential, yet persistent losses over recent fiscal years signal challenges ahead.

“Investors may need to brace for a dynamic journey as the company seeks to balance expansion with sustainable financial performance,” added the brokerage. Swiggy is yet to post its Q2 FY25 results. According to brokerage firms, Swiggy has been posting continuous losses since its inception in 2014.

The reason for this is high operational costs. In the last three financial years, Swiggy has consistently reported losses on a consolidated basis. In the financial year 2021-22, the company’s income was Rs 6,119 crore and during this period the company recorded a loss of Rs 3,628.90 crore. In the financial year 2022-23, the company’s income was Rs 8,714 crore. Swiggy IPO Listing: Zomato Rival Lists at 8% Premium With INR 420 on NSE and INR 412 on BSE; Check Details.

During this period the company’s loss increased to Rs 4,179 crore. In the financial year 2023-24, the company’s income increased to Rs 11,634 crore. During this period the company recorded a loss of Rs 2,350 crore. In the June quarter of the financial year 2024-25, the company recorded a total income of Rs 3,310.11 crore and a net loss of Rs 611.01 crore.

(The above story first appeared on LatestLY on Nov 14, 2024 05:16 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website todaynews24.top).