Swiggy shares slump nearly 6% day after market debut

Shares of newly-listed food delivery and quick commerce major Swiggy declined nearly 6 per cent on day two of trading on Thursday.

The stock tumbled 5.72 per cent to ₹429.85 apiece on the BSE. During the day, it lost 8.18 per cent to ₹418.65.

On the NSE, shares of the firm ended at ₹430.70, down 5.54 per cent.

The company’s market valuation eroded by ₹5,842.35 crore to ₹96,219.66 crore.

On Wednesday, shares of Swiggy ended with a premium of nearly 17 per cent against the issue price of ₹390.

Swiggy’s market cap had crossed ₹1 lakh crore on the day of the listing of shares on the stock exchanges.

The ₹11,327-crore initial public offer of Swiggy got fully subscribed on the final day of the share sale on Friday, ending with 3.59 times subscription.

The initial share sale had a price range of ₹371-390 apiece.

The company’s IPO (Initial Public Offering) had a fresh issue of shares worth ₹4,499 crore, along with an Offer-For-Sale (OFS) of ₹6,828 crore.

Going by the draft papers, the company plans to utilise proceeds from the fresh issue for investing in technology and cloud infrastructure; brand marketing and business promotion; and debt payment; and funds will also be allocated for inorganic growth and general corporate purposes.