Swiggy Shares Drop Over 5% After One Month Anchor Lock-In Period Ends

SUMMARY

Swiggy stock fell over 5% intraday as 6.5 Cr shares (3% stake) became eligible for trading after anchor lock-in expiry

Stock has delivered 31.92% returns since its November listing despite today's decline

Trading volumes surged to 10.76 Cr shares with market cap at INR 1,16,846 Cr at 2:40 PM

Shares of Swiggy slumped as low as 5.07% to reach INR 515.95 during the intraday trading on the BSE today (December 11) after the one month lock-in period for anchor investors ended.

Following the lock-in expiry, as many as 6.5 Cr Swiggy shares or 3% stake in the company became eligible to trade. The lock-in period for the remaining 50% shares of anchor investors will end on February 9.

Not to mention, investors often tend to sell shares to make profit on increased share prices.

Notably, Swiggy has given a 31.92% return to its investors since its listing on the BSE at INR 412 on November 8. However, it must be noted that the expiry does not mandate selling—shares simply become eligible for trading.

At 2:40 PM, Swiggy stock was trading 3.9% lower at INR 522.25 on the BSE.

At the above mentioned time, Swiggy’s trading volumes were at 10.76 Cr and its market capitalisation was at INR 1,16,846 Cr ( around $14.08 Bn).

Six out of the last ten trading sessions of Swiggy have ended in the green.

According to its latest quarterly results, Swiggy reported consolidated revenue of INR 2,146.14 Cr for September 2024, though it posted a net loss of INR 490.88 Cr. The company’s operating profit margin stood at -21.46%, while its net profit margin was -22.87%.

The quick commerce segment has been a bright spot for Swiggy, with its Instamart business seeing operating revenue surge 135.7% to INR 490 Cr in Q2 FY25 from INR 208 Cr in the year-ago period.

CLSA recently initiated coverage on Swiggy with an outperform rating, setting a target price of INR 708—suggesting a 32% upside from current levels. The brokerage highlighted significant growth potential in food delivery and quick commerce segments.

The food tech major expects to achieve adjusted EBITDA profitability on a consolidated level by Q3 FY26. Additionally, its quick commerce business targets adjusted EBITDA break-even by Q2 FY27.

The company recently announced expansion plans for its 10-minute delivery service ‘Bolt’ to 400 cities pan-India. Swiggy is also planning to foray into sports and recreation activities through a new wholly owned subsidiary, indicating its broader diversification strategy.