The food and grocery delivery company Swiggy Ltd is set to debut on the stock exchanges with an initial public offering of Rs 11,300 crore, making it the second-largest issue in the primary markets this year. Analysts are predicting that Swiggy's shares may see a flat or negative listing, and are advising investors who have not been allotted shares to wait for the share price to settle before buying. Despite being a major player in the e-commerce and food delivery market, Swiggy's IPO received a sluggish response, with concerns over its negative cash flow business model and high competition leading to lackluster interest from non-institutional investors and retail investors.
Swiggy's Bumpy IPO Debut: A Detailed Analysis
Background
An initial public offering (IPO) is a process whereby a private company offers its shares to the public for the first time. The company raises capital by selling these shares, which subsequently become available for trading on the stock market.
Swiggy's IPO Journey
Swiggy, India's leading food and grocery delivery company, launched its IPO on March 17, 2023, with an aim to raise Rs 11,300 crore. The offer received a lukewarm response, with concerns raised about Swiggy's negative cash flow business model and intense competition.
IPO Performance
Despite being a major player in the e-commerce sector, Swiggy's IPO witnessed a flat to negative listing on both the BSE and NSE. Shares opened at a premium of just 1-2% before declining slightly. Analysts attributed this performance to concerns about the company's profitability and intense competition.
Top 5 FAQs
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