1 week ago
The SoftBank-backed initial public offering (IPO) of online food delivery provider Swiggy, made a stellar debut on the stock market on Wednesday, November 13. Shares opened at ₹420 on the NSE, reflecting a premium of 7.69% over its IPO price, and surged to an intraday high of ₹449, marking a 15.12% rise. This defied earlier market expectations, with the grey market premium indicating a flat opening.
In an exclusive interview with CNBC-TV18’s Shereen Bhan, Sumer Juneja, Managing Partner and Head of EMEA & India Investing at SoftBank, acknowledged that listing Swiggy amid a turbulent market was challenging.
“We’re all breathing a sigh of relief now that the stock is up 10-12%, but it hasn’t been easy,” he said.
Juneja attributed Swiggy’s success to strategic pricing and investor confidence, remarking, “We priced it right… we had a high-quality book, a good balance between domestic and foreign investors, and people who really understood the story—not those looking to flip on day one but long-term holders.”
Juneja also highlighted SoftBank’s decision to hold its shares by opting out of the Offer for Sale (OFS), underscoring the fund’s belief in Swiggy’s long-term growth potential.
“Opportunities like Swiggy don’t come around often,” he said, pointing to the company’s growth across food delivery and grocery with Instamart. “India is only becoming richer, more urbanised…and the product-market fit is very strong. We think Swiggy has a long way to go.”
When asked about the challenge of getting the IPO pricing right, especially after seeing the poor performance of past IPOs, such as Paytm, Juneja said, “When you’ve seen stocks not do well in the past, the conversation with founders about pricing becomes easier. It’s all about ensuring that the price reflects long-term value rather than short-term gains.”
He then shifted focus to Swiggy’s CEO, Harsha Majety, crediting him for being an exceptional long-term thinker. “Harsha has made money for investors throughout his career,” Juneja said, praising Majety’s ability to stay focused on long-term growth rather than looking for quick returns.
SoftBank's recent investments, including in Indian startups like FirstCry and Ola Electric, have been instrumental in fuelling the turnaround in the company's FY25 second-quarter numbers. It reported a profit of 1.2 trillion yen ($7.7 billion) compared to a net loss of $6.21 billion last year.
SoftBank’s $400 million investment in FirstCry has appreciated to an estimated $1.2 billion, while its $600 million stake in Ola Electric has also surpassed the billion-dollar mark.
