After the anchor investor lock-in period ended today, Swiggy’s share price fell more than 5% in early trading on Wednesday. Swiggy’s gains from the previous session were erased when the company’s shares fell as high as 5.07% to ₹515.95 per on the BSE.
The one-month lock-in period for anchor investors concluded today, December 11, and Swiggy shares made their market debut on November 13. After a month of listing, anchor investors can sell half of their shares.
Consequently, up to 6.5 crore Swiggy shares, or 3% of the firm, were made available for trading following the lock-in expiration. On February 9, the remaining 50% of anchor investors’ shares will no longer be locked in.
Nevertheless, it should be mentioned that not all of the anchor investors’ shares will be sold after the lock-in period ends. They merely qualify to trade in the market.
Share price trend
Last month, Swiggy’s stock price made a respectable debut on the NSE, when it was listed for ₹420 per share, 7.69% higher than the issue price of ₹390.
Since listing, Swiggy’s stock has experienced a respectable run, rising more than 35% above its issue price. Swiggy’s stock is still trading over 30% higher than its IPO price despite today’s decline.
Global brokerage company CLSA started covering Swiggy with an “outperform,” setting a target price of ₹708 per share, which caused the stock price to rise somewhat in the previous session.
CLSA claims that better execution could lead to Swiggy’s increased profitability and growth. The total addressable market (TAM) for food delivery and rapid commerce is estimated to be $16 billion and $27 billion, respectively, for FY27.
In FY24–27, CLSA projects that Swiggy’s revenue and government will rise at a CAGR of 32% and 43%, respectively.
Swiggy’s stock was down 4.40% at ₹519.65 per share on the BSE at 10:15 a.m.
