Swiggy share price slumped over 7% on Tuesday, hitting a record low of ₹297 on the BSE, as the six-month lock-in period for non-promoter, pre-IPO shareholders expired. The expiry has freed up nearly 83% of the company’s total equity, or about 189.75 crore shares, for trading in the open market.
The sharp drop in Swiggy’s stock comes amid heavy selling pressure, with trading volume spiking to nearly 4 crore shares, far exceeding the weekly average of 1 crore. The stock opened at ₹305 and quickly slipped to an intraday low, marking a fresh bottom since its market debut earlier this year.
Despite the expiry of the lock-in period not mandating immediate selling, analysts suggest that several early investors—especially those sitting on paper profits—may choose to exit, contributing to volatility in the short term.
“Some pre-IPO investors had already partially exited during the IPO phase, but with the lock-in ending, we expect a substantial chunk of shares to change hands,” said a recent report by JM Financial.
Swiggy Share Price Performance
Swiggy shares have had a challenging run since listing. The stock is now:
- Down 10% in the past one month
- Lower by 18% in the last three months
- Fallen 45% year-to-date
- Down 34% over the past six months
The current share price of ₹297 is also well below its IPO price of ₹390 and nearly 50% off its post-listing high of ₹617.
Q4 Results: Loss Widens, Revenue Rises
Swiggy recently posted its Q4FY25 results, reporting a net loss of ₹1,081.18 crore, almost double compared to ₹554.77 crore in Q4FY24. However, revenue from operations grew 44.8% YoY to ₹4,410 crore, driven by solid performances across segments.
- Food Delivery Gross Order Value (GOV) rose 17.6% YoY to ₹7,347 crore.
- Instamart, the quick-commerce arm, recorded GOV growth of 101% YoY and 19.5% QoQ, reaching ₹4,670 crore.
Despite mounting losses, the GOV numbers reflect healthy consumer demand, especially in quick commerce.
Valuation & Analyst View
While Swiggy’s stock has come under pressure, JM Financial continues to maintain a ‘Buy’ rating, albeit with a revised target price of ₹450 (down from ₹500). The brokerage highlights that the market is largely pricing in only the food delivery business and not assigning adequate value to Instamart and other verticals.
“We believe long-term investors can consider these dips to accumulate the stock, as current prices do not reflect the full business potential,” JM Financial noted.
Nuvama Research also estimated that the unlocked shares are worth around $738 million at current market prices, adding to the liquidity pressure on the stock.
- Swiggy share price drops over 7% to ₹297 after pre-IPO lock-in ends.
- Nearly 189.75 crore shares, or 83% of equity, become free for trading.
- Heavy volumes suggest investor exits amid broader market volatility.
- Q4FY25 shows rising revenue but widening net losses.
- Analysts remain bullish long-term, with revised price targets.
Swiggy share price continues to face near-term headwinds, but analysts suggest long-term investors can see opportunity amid the correction. With more shares hitting the market, eyes will be on whether demand can absorb the increased supply in the coming sessions.