In an unexpected show of companionship, food-tech delivery giant Zomato has publicly congratulated its rival, Swiggy, on the successful listing of its initial public offering (IPO). The gesture comes in the wake of Swiggy’s debut on the stock market, where it received a warm reception from investors.
Zomato shared its goodwill message on social media, stating, “You and I in this beautiful world,” highlighting the competitive yet collaborative nature of the food delivery industry in India. The post, which resonated with many, emphasized the spirit of healthy competition and mutual respect among industry players.
Swiggy’s IPO has been a significant milestone for the company, reflecting investor confidence in the burgeoning online food delivery sector. The listing is expected to bolster Swiggy’s growth prospects and enhance its market position against competitors like Zomato.
SWIGGY’S DEBUT
Shares of Swiggy made a surprising debut as it was listed at Rs 420 on NSE, a premium of 7.69 per cent over the issue price of Rs 390 apiece. Similarly, the stock kicked off its maiden trading session with a premium of 5.64 per cent at Rs 412 on BSE over the given issue price.
Swiggy’s listing has been above expectations. Ahead of its debut, shares of Swiggy were commanding a grey market premium (GMP) of Swiggy, a premium of Rs 2 in the unofficial market, suggesting a flat listing for the investors. The stock was consistently losing GMP following muted bidding.
Bengaluru-based Swiggy sold its IPO between November 6 and November 8. It had offered its shares in the fixed price band of Rs 371-390 per share with a lot size of 38 shares. It raised a total of Rs 11,327.43 crore from its IPO, which included a fresh share sale of Rs 4,499 crore and an offer-for-sale (OFS) of up to 175,087,863 equity shares.
HOW WAS ZOMATO’S DEBUT?
Meanwhile, when Zomato made its highly anticipated IPO debut on July 23, 2021 it raised approximately Rs 9,375 crore (around $1.3 billion) and became one of the largest IPOs in India at the time.
The shares were offered at a price band of Rs 72 to Rs 76, with the final price fixed at Rs 76. The IPO was oversubscribed nearly 38 times, reflecting robust investor confidence.
On its listing day, Zomato’s stock opened at Rs 115 on the BSE, marking a 51.3% premium over the issue price and valuing the company at over $12 billion.
Now, with Swiggy’s exceptional market performance, industry analysts suggest that such gestures of goodwill can pave the way for a more cooperative environment in the tech-driven food delivery space, where both companies have been vying for market share.
