Swiggy’s 7.8 crore pre-IPO shares worth Rs 3,345 crore will become eligible for trading over the next month as their lock-in period expires. Despite the increased supply, analysts suggest the impact on share prices may be limited due to a large portion of shares being held by promoters and institutional investors.
Swiggy, India’s leading food delivery platform, is set to unlock 7.8 crore pre-IPO shares worth Rs 3,345 crore over the next month, as the lock-in period expires. The unlocking, which will take place in multiple tranches starting from January 29, is expected to impact market activity around the stock, though experts suggest the effect may be limited due to the ownership of a significant portion of these shares by promoters and institutional investors.
The first batch of 29 lakh shares will be released on January 29, followed by smaller batches, including 300,000 shares on January 31. The total value of these unlocked shares is based on Swiggy’s last closing price of Rs 428.30 on the BSE. Despite the potential increase in supply, analysts from brokerage firm Nuvama pointed out that the shares held by promoters and institutional investors may not be immediately sold, limiting the short-term impact on Swiggy’s share price.
Swiggy, headquartered in Bangalore, Karnataka, has seen remarkable growth in the Indian food delivery market, providing a wide range of services, including online food ordering and home delivery, as well as expanding into new areas like groceries and essential deliveries. With its lock-in period coming to an end, Swiggy’s shares will now be more accessible to a broader range of investors, but the company’s long-term prospects will continue to be shaped by its market strategies and competitive position in the rapidly growing sector.
