Swiggy shares slump nearly 6% day after market debut

Swiggy's market cap had crossed ₹1 lakh crore on the day of the listing of shares on the stock exchanges.

Shares of newly-listed food delivery and quick commerce major Swiggy declined nearly 6 per cent on day two of trading on Thursday.

In this Tuesday, file photo, deliverymen of food aggregators Swiggy ride their bikes towards their destinations, in New Delhi. (PTI)

The stock tumbled 5.72 per cent to ₹429.85 apiece on the BSE. During the day, it lost 8.18 per cent to ₹418.65.

On the NSE, shares of the firm ended at ₹430.70, down 5.54 per cent.

The company's market valuation eroded by ₹5,842.35 crore to ₹96,219.66 crore.

On Wednesday, shares of Swiggy ended with a premium of nearly 17 per cent against the issue price of ₹390.

Swiggy's market cap had crossed ₹1 lakh crore on the day of the listing of shares on the stock exchanges.

The ₹11,327-crore initial public offer of Swiggy got fully subscribed on the final day of the share sale on Friday, ending with 3.59 times subscription.

The initial share sale had a price range of ₹371-390 apiece.

The company's IPO (Initial Public Offering) had a fresh issue of shares worth ₹4,499 crore, along with an Offer-For-Sale (OFS) of ₹6,828 crore.

Going by the draft papers, the company plans to utilise proceeds from the fresh issue for investing in technology and cloud infrastructure; brand marketing and business promotion; and debt payment; and funds will also be allocated for inorganic growth and general corporate purposes.