India’s Swiggy sees shares jump nearly 8% on debut after country’s second-largest IPO this year

Shares of Indian food delivery giant Swiggy rose nearly 8% on their trading debut Wednesday after its IPO became the country’s second largest this year.

The company raised 113.27 billion Indian rupees ($1.34 billion) in its IPO that closed Monday, pricing its shares at 390 rupees apiece. The IPO was reportedly oversubscribed more than three times, according to Indian business outlet Mint.

The listing comes close on the heels of Hyundai Motor India’s 278.56 billion rupee IPO in October, India’s largest ever IPO by amount raised.

The shares allocated to qualified institutional buyers were subscribed more than six times, according to Mint, while the portion given to retail investors was 114% subscribed.

The IPO comprised both an offer for the sale of existing shares, worth 68.28 billion rupees, and a fresh issue of shares, worth 44.99 billion rupees.

The lead bookrunners for this IPO included Kotak Mahindra Capital, J.P. Morgan India, and Citigroup Global Markets India.

Swiggy said the net proceeds of 43.59 billion rupees from the fresh issue of shares will be used to pay down borrowings in its subsidiary Scootsy, as well as for further investment in the subsidiary.

Proceeds could also be used to fund inorganic growth “through unidentified acquisitions and general corporate purposes,” among other things.