Swiggy Shares Drop 10% After Listing

Swiggy, India's largest food delivery company, witnessed a disappointing debut on the stock market, with its shares plunging by 10% from their initial public offering (IPO) price on Thursday, March 10.
The company's shares opened at a price of ₹464.50 on the National Stock Exchange (NSE), down from the IPO price of ₹395 per share. On the Bombay Stock Exchange (BSE), the stock opened at ₹461.95, a drop of over 10%. The stock continued to trade lower throughout the day, closing at ₹418.80 on the NSE and ₹414.95 on the BSE.
The poor performance of Swiggy's shares has raised concerns about the company's long-term prospects. Some analysts have attributed the decline in share price to the company's high valuation and the competitive nature of the food delivery market. Swiggy faces competition from other major food delivery companies such as Zomato, Uber Eats, and Dunzo.
Despite the challenges, Swiggy remains the dominant player in the Indian food delivery market. The company has a wide reach, with operations in over 500 cities across India. Swiggy also has a strong track record of execution and has been able to grow its market share steadily.
The company is well-positioned to benefit from the growing demand for food delivery in India. The country's online food delivery market is expected to grow from $4.2 billion in 2020 to $10 billion by 2025. Swiggy is well-positioned to capture a significant portion of this growth.
However, the company faces several challenges that could impact its future growth. Intense competition, rising food prices, and regulatory changes are just a few of the difficulties that Swiggy must navigate in order to maintain its market leadership.
Overall, the listing of Swiggy on the stock market is a significant event for the company and the Indian food delivery industry. However, the sharp decline in the share price on day one of trading suggests that investors are uncertain about the company's future prospects. Time will tell whether Swiggy can overcome its challenges and achieve its long-term growth goals.