Swiggy shares slump nearly 6% day after market debut

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

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

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

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

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

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

The Rs 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 Rs 371-390 apiece.

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