New Delhi, Nov 13 (SocialNews.XYZ) It rained billions of dollars for global investment group Prosus and Chinese conglomerate Tencent as they raked in the moolah from their investments in Zomato-rival Swiggy’s IPO as it made its stock market debut on Wednesday at a valuation of over $11 billion.
According to the company's draft red herring prospectus (DRHP), Prosus invested nearly Rs 9,055 crore ($1.07 billion) in the online food platform and made Rs 26,927 crore ($3.2 billion) in IPO, thus netting a $2.12 billion profit from its investment.
On the other hand, Chinese behemoth Tencent infused Rs 1,343 crore and made Rs 3,166 crore, making more than 135 per cent profit (on the issue price of Rs 390).
Swiggy’s share opened at Rs 420 per share on the National Stock Exchange, a 7.7 per cent premium over its IPO price of Rs 390.
At closing, Swiggy’s shares settled almost 17 per cent higher at Rs 456 apiece on the NSE.
The company’s IPO was oversubscribed by 3.6 times which consisted of Rs 4,499 crore of fresh issue and an offer for sale (OFS) of 17.51 crore shares worth Rs 6828 crore with the price band of Rs 371-390 per share.
According to Swiggy CEO Sriharsha Majety, they are expecting very solid growth over the next 3-5 years.
“We are expanding our geographical footprint and the store network for our Instamart business," said Majety.
According to Prosus, Swiggy is on a strong growth trajectory as a public company after having diversified into new categories and expanding into new cities.
Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said that despite subdued market mood and sluggish response from overall investors, Swiggy listing surprised the market participants.
“Positive listing and price holding above its issue price of 390 should be seen as strong demand for the company. This shows investors are positive on the space and fear of missing out factors is holding investors not to miss the sector growth story, similar to Zomato post listing trend,” he mentioned.
Source: IANS
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