Online food delivery and quick commerce company Swiggy shares slipped 7.54% to close at ₹421.60 on Thursday&mdash;just 24 hours after its strong public debut in a bearish market&mdash;due to profit booking on higher level.&nbsp;
During the intra-day trading, shares of Swiggy touched ₹489 on higher side and ₹418 on the lower side. Trading volume and value in the trading session stood at 5.61 crore and ₹2,522 crore on the NSE, respectively.
Swiggy's shares were listed in the stock market on Wednesday at a price of ₹420 with a premium of 7.69%. Buying was seen in the stock after the listing and at the end of trading, it closed at ₹464, up 18.97%.
The ₹11,327 crore IPO of the online food delivery company was open for retail investors November 6&ndash;8. The IPO received a mixed response from investors and was subscribed more than 3.50 times.
According to Bajaj Broking, there is a big risk in Swiggy's business because of tough competition from Zomato, Zepto and new companies coming in the market.
&ldquo;While there's optimism about Swiggy&rsquo;s potential to capture further market share in India&rsquo;s evolving food delivery and quick commerce segments, the road to profitability may be bumpy,&rdquo; said Bajaj Broking Research.
Swiggy has shown impressive growth potential, yet persistent losses over recent fiscal years signal challenges ahead.
&ldquo;Investors may need to brace for a dynamic journey as the company seeks to balance expansion with sustainable financial performance,&rdquo; added the brokerage.
Swiggy is yet to post its Q2 FY25 results. According to brokerage firms, Swiggy has been posting continuous losses since its inception in 2014. The reason for this is high operational costs.
In the last three financial years, Swiggy has consistently reported losses on a consolidated basis. In the financial year 2021-22, the company's income was ₹6,119 crore and during this period the company recorded a loss of ₹3,628.90 crore.
In the financial year 2022&ndash;23, the company's income was ₹8,714 crore. During this period the company's loss increased to ₹4,179 crore. In the financial year 2023-24, the company's income increased to ₹11,634 crore. During this period the company recorded a loss of ₹2,350 crore.
In the June quarter of the financial year 2024&ndash;25, the company recorded a total income of ₹3,310.11 crore and a net loss of ₹611.01 crore.
&mdash;IANS

Swiggy CEO Sriharsha Majety, National Stock Exchange MD & CEO Ashishkumar Chauhan with the food app's delivery agent at the bell-ringing ceremony on November 13.

Food delivery giant sees 7.5% drop as shares return to IPO price amid profit-booking spree

Swiggy Shares Lose Sizzle, Sink to IPO Price

Food delivery giant sees 7.5% drop as shares return to IPO price amid profit-booking spree

November 14, 2024 | 17:38 IST