Thu Nov 14 14:49:33 UTC 2024: ## Swiggy Shares Surge After Listing, But Fail to Hold Gains

**Mumbai, November 14:** Swiggy’s share price soared on Thursday, marking its second consecutive day of gains since its debut on Indian stock exchanges. The food delivery giant opened the day with a 7.3% jump, briefly pushing its market capitalization above ₹1 lakh crore. However, despite this positive start, the stock ended the day trading in the red.

Swiggy’s shares were listed at a 5.64% premium to its issue price on BSE, while on NSE it opened with a 7.7% premium. This strong initial performance was fueled by investor enthusiasm, with analysts attributing the positive listing to investor confidence in the sector and a fear of missing out on growth.

Several brokerages initiated coverage on Swiggy stock after the listing. HDFC Securities initiated with an “Add” rating and a target price of ₹430 per share, citing potential improvement in profitability due to scale and strong performance in quick commerce. However, the firm acknowledged that Swiggy currently lags Zomato in food delivery growth.

JM Financial also issued a “Buy” recommendation, but with a target price of ₹470, emphasizing Swiggy’s significant upside potential despite its slower growth compared to Zomato.

Despite the initial surge, Swiggy shares failed to sustain gains and were trading lower by 0.12% at ₹455.40 by midday. Despite this setback, analysts are optimistic about the company’s long-term prospects, citing the potential for growth in the burgeoning food delivery and quick commerce markets.

**Disclaimer:** The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. Investors are advised to consult with certified experts before making any investment decisions.

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