In an unexpected turn of events, Zomato, a prominent player in the food-tech delivery sector, has extended congratulations to its competitor, Swiggy, following the successful listing of Swiggy's initial public offering (IPO). This unusual act of camaraderie was demonstrated through a public message shared on social media, emphasizing the coexistence of competition and collaboration within the industry landscape in India.
Swiggy's IPO launch has garnered positive attention, symbolizing a momentous achievement for the company and underscoring the faith that investors have in the booming online food delivery market. The listing is anticipated to fortify Swiggy's prospects for growth and strengthen its standing in the market as it competes with rivals like Zomato for market share and consumer attention.
When Swiggy's shares entered the market, they performed impressively, with a listing price of Rs 420 on the National Stock Exchange (NSE), representing a premium of 7.69% from the issue price of Rs 390 per share. Similarly, on the Bombay Stock Exchange (BSE), the stock commenced trading with a 5.64% premium at Rs 412, highlighting the enthusiastic reception from investors.
The IPO offering from Swiggy, which took place between November 6 and November 8, included shares priced between Rs 371 and Rs 390 each, generating a total of Rs 11,327.43 crore. This sum comprised a fresh share sale amounting to Rs 4,499 crore and an offer-for-sale (OFS) of up to 175,087,863 equity shares. Swiggy's entry into the stock market has exceeded prior expectations, with the company displaying resilience and competitiveness in the face of evolving market dynamics.
In a similar vein, Zomato had made its own IPO debut earlier in 2021, raising substantial funds and becoming one of the most significant IPOs in India at that time. The successful listing of both Zomato and Swiggy underscores the robust investor interest in the food delivery sector, setting the stage for further industry growth and innovative competition.