Swiggy tumbled over 7% on Tuesday morning, hitting ₹297 on the BSE. The trigger? Its six-month post-IPO shareholder lock-in expired on May 12, freeing up a massive 83% of the company’s shareholding for trade.
That’s not a trickle—it’s a flood. And when that much stock becomes available overnight, markets don’t wait to ask if it’s panic or just profit-taking. They just react.
Why does this matter to the average investor?
Because it shows how little it takes to spook the street. Swiggy’s IPO was meant to be a breakout moment, yet the stock is down 44% year-to-date.
Now, with private equity and venture capital funds finally able to sell, the selloff was almost pre-written. Pre-IPO backers sitting on fat paper gains—many of them Chinese or large institutional funds—don’t always care if you’re holding long-term. They’ve got exits to make.
The irony? Some of these investors sold before the IPO. Others dumped during. And now, with shares well below listing price, they still might sell. Because when you’re sitting on years of compounded gains, a few bad quarters—or a ₹297 price tag—don’t scare you.
Also Read Swiggy Q4 Report: Net Loss Nearly Doubles to ₹1,081 Crore, But Growth is Still Strong
The bigger problem: Swiggy’s stuck in the middle
Unlike rival Zomato, which has gone all-in on quick commerce with Blinkit, Swiggy’s Instamart is lagging, says Anand Rathi. Blinkit is not only bigger—it’s growing faster and bleeding slower. Swiggy’s losses in the segment are rising, and break-even is now pushed to late FY28, up from FY27.
That’s not great news in a high-burn, low-loyalty market. You either dominate, or you disappear. Right now, Swiggy’s trying to do both—lead in food delivery while catching up in instant groceries. That split focus can make or break a tech company.
What the experts say
- Anand Rathi pegs the 12-month target at ₹400 but flags growing Instamart losses.
- MOFSL holds a neutral view, with a valuation of ₹340, citing intense competition.
- ICICI Securities is the outlier, with a ₹740 target based on a three-stage DCF model, but warns of macro risks.
Even Nuvama, which doesn’t rate the stock, noted Swiggy has outperformed Zomato in food delivery for two quarters straight. But in quick commerce? It’s still Blinkit’s game.
So, should you be worried?
Only if you expected this to be easy. Swiggy was never just about food. It was a bet on lifestyle convenience—and convenience is expensive. The next few quarters may bring more volatility as institutional holders trim their stakes and Swiggy tries to prove it has a sustainable growth story.
But here’s the kicker: Swiggy still has time. What it doesn’t have is investor patience. And on Dalal Street, that’s often the first thing to vanish.
Also Read Swiggy Strikes Back: India’s Food Fight Just Got Serious in Q4FY25
