Swiggy’s share price has been making significant strides since its listing on Indian stock exchanges. On Thursday, November 14, 2024, the stock extended its upward momentum, rising as much as 7.3% intraday.
This followed a positive debut the previous day, November 13, when the shares closed at a 17% premium over the issue price. As a result, Swiggy’s share price has increased by over 25% from its issue price, marking an impressive performance in the share market investment landscape.
Swiggy’s debut on the stock market
The company’s shares were listed at ₹412 apiece on the Bombay Stock Exchange (BSE), a 5.64% premium over the issue price of ₹390 per share. On the National Stock Exchange (NSE), the stock is listed with a slightly higher premium of 7.7%, at ₹420. This strong debut demonstrated investor optimism, with Swiggy's market capitalisation briefly surpassing ₹1 lakh crore.
Despite the early gains, Swiggy shares experienced a dip shortly after the positive opening, trading in the red later in the session. However, the upward momentum on the first day of trading set the tone for future performance, confirming the market’s strong belief in the company’s potential.
Long-term growth prospects and advice
Analysts have also expressed confidence in Swiggy’s long-term prospects. They pointed out that the strong demand for Swiggy shares, with the price holding above the issue price of ₹390, signals positive sentiment from investors. Analysts believe the initial success of the listing mirrors the post-listing trends seen with similar companies, with investors eager to be part of the fast-growing food delivery and quick commerce sector.
It was also recommended that Swiggy shareholders hold their investments for the long term despite short-term volatility and competition in the space. Analysts expect Swiggy’s long-term growth story to unfold similarly to other sector leaders, making it an attractive option for share market investment enthusiasts.
The road ahead for Swiggy
Despite the strong debut, analysts caution that competition in the food delivery and quick commerce space will continue to pose challenges. Swiggy’s debut on the stock market has been a resounding success, with the stock price showing an impressive increase of over 25% from the issue price. For those considering share market investment, Swiggy offers a promising opportunity, though investors should be mindful of the competitive pressures and the company’s ability to maintain its growth trajectory.
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