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Swiggy's shares made a surprising debut on Dalal Street on Wednesday, listing at Rs 420 on the NSE, a 7.69% premium over its issue price of Rs 390. On the BSE, the stock opened at Rs 412, reflecting a 5.64% premium. The listing exceeded expectations, despite a muted grey market premium (GMP) of Rs 2 before the debut, hinting at a flat opening.
Swiggy’s IPO, held between November 6 and 8, offered shares in a price band of Rs 371-390 with a lot size of 38 shares. The company raised Rs 11,327.43 crore, comprising Rs 4,499 crore in fresh equity and an offer-for-sale (OFS) of 175,087,863 shares. The issue saw overall subscription of 3.59 times, driven by qualified institutional buyers (QIBs) with 6.02x subscription. Retail investors and employees subscribed 1.14x and 1.46x, respectively, while the non-institutional investors' (NIIs) portion was only 41% subscribed.
Benchmark indices opened flat on Wednesday following a significant dip in the previous session that wiped out Rs 5.76 lakh crore in investor wealth.
At 9:30 AM, the S&P BSE Sensex fell 76.81 points to 78,598.37, while the NSE Nifty50 dropped 75 points to 23,808.45.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlighted stark variations in global market performances this year. The US S&P 500 leads with a 26.17% YTD return, while India’s Nifty trails at 9.85%, and the Euro Zone’s Stoxx 50 lags with 5.14%. Factors like economic resilience and earnings expectations drive these disparities, with the US showing strength, India facing growth challenges, and the Euro Zone remaining weak.
Vijayakumar warned that high US bond yields and a rising dollar index could trigger outflows from emerging markets, including India. He advised caution in sectors like cement and metals, favoring banking, IT, and pharma for better growth prospects.
Prime Minister Narendra Modi visited Bihar on November 13, launching and laying the foundation for development projects in Darbhanga worth around Rs 12,100 crore. These initiatives aim to boost health infrastructure, enhance road and rail connectivity, expand access to affordable medicines, and promote clean energy in the state.
A major highlight was the foundation stone laying of AIIMS Darbhanga, a Rs 1,260-crore project featuring a super-speciality hospital, AYUSH block, medical and nursing colleges, a night shelter, and residential facilities. This facility will enhance tertiary healthcare for Bihar and nearby states, significantly improving access to specialized medical services.
Connectivity also took center stage, with the inauguration and foundation laying of National Highway projects worth approximately Rs 5,070 crore, promising better transport infrastructure and economic growth for the region. These projects reflect a comprehensive vision for Bihar's development.
India's urban middle class is feeling the pinch as persistent inflation drives down spending on essentials like cookies and fast food. This shift in consumption patterns is beginning to impact the earnings of major consumer goods companies and raises concerns about the sustainability of India’s long-term economic growth.
Post-pandemic, urban consumption has been a key driver of India’s economy, but the trend appears to be reversing. Nestle India Chairman Suresh Narayanan highlights the growing disparity, noting that while affluent consumers continue to spend freely, the once-dominant middle-class segment is shrinking. This group, estimated to encompass a third of India’s 1.4 billion population, plays a critical role both economically and politically.
Nestle India, known for its Kit Kat bars and other staples, recently reported its first revenue decline since mid-2020. As Asia's third-largest economy targets 7.2% growth by March 2025, middle-class struggles could pose a challenge to achieving this goal.
