Swiggy's IPO debut sees strong gains, but competition challenges loom

Swiggy will have to convert growth into profitability

The Swiggy initial public offering (IPO) saw a  retail subscription of 1.14 times and qualified institutional buyer segment subscription of around six times. The stock listed at a premium of 8 per cent and ended the day’s trade with nearly a 17 per cent gain over the issue price. The Rs 11,327 crore issue included an offer for sale of existing equity worth about Rs 6,828 crore and a fresh equity issuance of Rs 4,499 crore. The proposed breakup of allocation is dark store expansion (about 26 per cent), brand promotion (24.8 per cent), tech and Cloud (15.6 per cent),