Prosus And Tencent Reap Billions From Swiggy's Stellar IPO Debut
Billions of dollars poured in for the global investment group Prosos and Chinese conglomerate Tencent as they reaped returns from their investments in Swiggy, a competitor of Zomato during its initial public offering debut, on Wednesday reaching a valuation exceeding $11 billion in the stock market.
As per the investment document of the company (DRHP) Prosus put in around Rs 9 055 crore ($ 1 07 billion ) into the online food service and reaped Rs 26 927 crore ($ 3 20 billion ) from its initial public offering (IPO) resulting in a profit of $ 212 billion from its venture. Meanwhile giant Tencent invested Rs 1344 crore and earned Rs 3166 crore making, over a hundred and thirty five percent profit (based on the price set at Rs 390).
Swiggys stock debuted on the National Stock Exchange at Rs 420 per share with a 7% premium from its IPO price of Rs 390 per share. Closed the day trading almost 17% higher at Rs 456 per share on the NSE platform.The companys initial public offering (IPO) which saw demand oversubscribed by 3 times had a mix of fresh issue amounting to Rs 4 499 crore and an offer for sale (OFS) totaling to 17 million shares valued atRs 6828 crore within a price range of Rs 371 to Rs 390, per share.
Swiggy CEO Sriharsha Majety anticipates growth in the coming 3 to 5 years by expanding their reach and store presence for their Instamart services as mentioned by Majety himself. Prosus highlights that Swiggys progress as a traded entity is promising due to its expansion, into different sectors and cities.
Prashanth Tapse of Mehta Equities Ltds Research Department expressed surprise at Swiggys listing in the midst of a market and lukewarm investor interest." The companys positive listing and maintaining a price above its offering of 390 indicate robust demand " he noted." This signals investor optimism in the sector with FOMO playing a role, in keeping investors engaged in the growth narrative like the trend seen after Zomato went public " he added.
Shandor Brenner is an American journalist recognized for his sharp and insightful reporting on social and political issues. His work is known for its depth, integrity, and the ability to highlight critical societal concerns.
