Swiggy Shares Jump 9% To Hit All-Time High Ahead Of First Q2 Results Post Listing
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Swiggy’s newly listed shares surged by as much as 9.4% on Tuesday, reaching Rs 542.10 on the BSE
Swiggy Share Price
Swiggy’s newly listed shares surged by as much as 9.4% on Tuesday, reaching Rs 542.10 on the BSE. The food delivery giant has seen a remarkable 27% rise from its IPO issue price of Rs 390, and will be releasing its financial results for the second quarter ending in September today.
Swiggy made its debut on the Dalal Street on November 13, with its shares listing at Rs 420 on the NSE, reflecting a 7.7% increase from the IPO price. On the BSE, the stock debuted at Rs 412, a 5.6% premium over the issue price.
The company’s Rs 11,327 crore public offering was subscribed 3.59 times. The retail investor category saw 1.14 times subscription, while the employee portion was subscribed 1.65 times.
The IPO consisted of a fresh issue worth Rs 4,499 crore and an offer-for-sale component of Rs 6,828 crore, with the share sale priced between Rs 371-390 per share.
Swiggy is expected to narrow its losses in the September 2024 quarter on a sequential basis, with revenue growth projected at around 6%. At a consolidated level, the adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) loss is anticipated to decrease to Rs 270 crore from Rs 350 crore in Q1 FY25, according to JM Financial.
In the food delivery segment, Swiggy is likely to report a 6% sequential growth, driven by increased traction for its co-branded credit card with HDFC Bank, the brokerage added.
Separately, both the BSE and NSE have sought clarification from Swiggy regarding a news report stating that the company has expanded its 10-minute food delivery service, Bolt, to over 400 cities. Swiggy’s response is awaited.
On the technical front, the stock has support at Rs 505.
“Investors may consider booking profits at current levels, with support at Rs 505,” said Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking.
“Swiggy’s stock price is currently sideways to bearish on the daily charts, with strong resistance at Rs 542. A daily close below the support level of Rs 505 could lead to a near-term downward target of Rs 441,” added Sebi-registered research analyst AR Ramachandran.
Around 7.20 lakh shares of Swiggy were traded on the BSE, lower than the two-week average volume of 8.85 lakh shares. The total turnover came to Rs 37.42 crore, with a market capitalization (m-cap) of Rs 1,13,478.09 crore.
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