Zomato extended a rare public gesture of goodwill to its long-time competitor, Swiggy, as the latter launched its highly anticipated initial public offering (IPO) on Wednesday, November 13.
In a post on X, Zomato celebrated Swiggy's IPO with a simple message: “You and I... In this beautiful world,” followed by a heart emoji. The tweet included an image of Zomato and Swiggy delivery personnel standing together, gazing at the Bombay Stock Exchange (BSE) building, adorned with a “Now Listed Swiggy” banner.
“it’s giving jai and veeru 😎✨ [sic],” Swiggy replied to Zomato's tweet.
However, Deepinder Goyal, the founder and CEO of Zomato, was not invited to return as a shark on the fourth season of Shark Tank India because Swiggy, Zomato's main competitor, sponsored the season and requested his removal.
Despite this, Goyal tweeted, “Congratulations @swiggy ! Couldn't have asked for a better company to serve India with.”
Founder and CEO of Zerodha, Nithin Kamath also posted, “Congrats to @Swiggy on the listing. I had tweeted this in 2019 when we had very few aspirational brands worth investing in. But since then, it's crazy how much the Indian markets have changed in terms of the companies, the investor base, etc. I hope we see more homegrown brands IPO in the coming years.”
Swiggy's IPO, which opened to strong interest, was listed at a price of ₹420 on the National Stock Exchange (NSE), a 7.69 per cent increase over the IPO price of ₹390.
On the BSE, Swiggy debuted at ₹412, representing a 5.64 per cent premium. The IPO, India’s largest in the food delivery sector, was priced in the range of ₹371-390 per share and aimed to raise ₹11,327 crore.
Market conditions, however, showed mixed sentiments, as the BSE Sensex slipped by 170 points, and Nifty50 also saw a slight drop. Despite the cautious market environment, Swiggy’s IPO achieved an impressive oversubscription of 3.59 times. The offering received significant backing from Qualified Institutional Buyers, whose bids exceeded their allotment by 6.02 times, and non-institutional investors, who oversubscribed by 10.41 times.
Prosus NV, a key Swiggy backer and a Tencent Holdings partner, saw its investment yield significant returns, reportedly earning around $2 billion with Swiggy's market debut. The strong opening has been widely viewed as a testament to the robust growth potential of India’s digital economy and its expanding food delivery market.
Swiggy’s IPO structure included a fresh issuance of 11.54 crore shares, worth approximately ₹4,499 crore, alongside an offer for sale of 17.51 crore shares valued at ₹6,828 crore. The bidding period lasted from November 6 to 8, with allotments finalized on November 11.
For retail investors, Swiggy’s IPO required a minimum investment of ₹14,820, with a lot size of 38 shares. Additional incentives were offered to employees, who were eligible for up to 750,000 shares at a ₹25-per-share discount, further boosting participation.
Catch all the Business News , Corporate news , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.