Nov 13 Reuters Shares of Indian food and grocery delivery firm Swiggy jumped nearly 15 in their trading debut on Wednesday, bucking weakness in the broader market and a better performance than some analysts had predicted for the lossmaking firm after its 1.4 billion IPO.
The stock had listed at 420 rupees 4.98 on India39;s National Stock Exchange and rose to a high of 448 rupees by late morning, compared to its issue price of 390 rupees, even as the country39;s benchmark indexes slid after a spike in inflation dampened bets on interest rate cuts. .BO
Swiggy39;s IPO, India39;s secondlargest share sale this year, was oversubscribed by more than threefold last week, helped over the line by institutional investors rushing in with orders on the final day of the sale.
At the day39;s high, the company had a valuation of 11.9 billion.
The listing reflects a degree of optimism about Swiggy39;s longterm growth prospects, driven by its strong brand recognition, extensive network, and dominant position in the food delivery market, said Shivani Nyati, head of wealth at Swastika Investmart.
However, the company39;s continued losses and the challenging market conditions may temper investor enthusiasm in the long term, Nyati added.
Swiggy39;s debut still stands in sharp contrast to rival Zomato39;s blockbuster listing in 2021. Zomato shares have more than tripled since then.
Swiggy and Zomato dominate India39;s food delivery market, with estimated market shares of 34 and 58,…