(Reuters) -Shares of Indian food and grocery delivery firm Swiggy rose 2.5% in their trading debut on Wednesday, after its $1.4 billion IPO last week, but pared initial gains on concerns about its path to profitability.

Swiggy Ltd had set a price band of Rs 371-390 per share for its Rs 11,300 crore initial public offering. The offer consisted of a fresh issue of Rs 4,499 crore and an offer-for-sale of Rs 6,825 crore.

India’s online food and grocery delivery industry has witnessed remarkable growth, particularly since the COVID-19 pandemic, which accelerated the adoption of digital services across the country

Shares of Indian food and grocery delivery firm Swiggy jumped nearly 15 per cent in their trading debut on Wednesday, bucking weakness in the broader market and a better performance than some analysts had predicted for the loss-making firm after its $1.

Shares of Indian startup Swiggy surged at its Mumbai debut, driven by strong institutional interest in the food and grocery delivery company.

The company's IPO, the country's second-largest this year, was reportedly oversubscribed more than three times.

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

Swiggy shares listed at a premium of 7.69 per cent on the National Stock Exchange (NSE) on November 13. The stock debuted at Rs 420 per share on the NSE over the IPO price of Rs 390, according to a report by Moneycontrol.