When the much-awaited Swiggy IPO took place in November last year, many HNIs make put in their money into the company. Some made smaller investments of more than Rs 2 lakh and the others who bought stocks for over Rs 10 lakh. But they weren’t buying stocks because they believed in the real value or long-term potential of these shares. They bought them because they assumed someone else will buy them at an even higher price.

The Ken reporter Suprita spoke to a VP of a Bengaluru-based unicorn. They told him that they just though they were getting a good deal at a discounted price. They even sold off some of their SIPs and even their Zomato shares. When many HNIs buy unlisted stocks before a company's IPO, they drive up the stock price. But once the pool of these HNI buyers dries up, the bubble bursts.

It is the theory of greater fools and it played out during Swiggy's IPO when brokers pitched Swiggy shares as a piece of India’s hottest food-delivery and oldest quick-commerce giant, that too at a discount.

But a discount to what?

Because Swiggy’s market capitalisation is right now stands at under $9 billion as compared to its listing valuation of $13 billion.

So what happens to HNIs like the unicorn VP who bought Swiggy shares before its IPO?

Tune in.

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