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Shares of food delivery platform Swiggy Ltd. declined by as much as 7% on Tuesday following the expiry of its shareholder lock-in period
Swiggy Share Price
Shares of food delivery platform Swiggy Ltd. declined by as much as 7% on Tuesday, May 13, following the expiry of its shareholder lock-in period.
According to a note from Nuvama Alternative & Quantitative Research, nearly 189.8 crore shares of Swiggy became eligible for trading on Tuesday as the six-month and extended shareholder lock-in period came to an end. This accounts for approximately 85% of the company’s total outstanding equity. At current market prices, the value of these unlockable shares is estimated at \$738 million.
It’s important to note that the expiry of the lock-in period does not imply that all these shares will be sold immediately. It only means they are now eligible for trading in the open market.
Swiggy recently announced its March quarter results, reporting a wider net loss year-on-year, largely due to continued investments in its quick-commerce vertical, Instamart. However, its core food delivery segment showed strong performance, with better Gross Order Value (GOV) growth compared to rival Eternal, and improved margins.
Despite the wider loss, the majority of analysts covering Swiggy maintain a “buy” rating, citing confidence in the company’s growth potential and operational efficiency improvements.
The stock has been under pressure, opening near its post-listing lows and trading well below its IPO price of Rs 390. It is currently down about 50% from its post-listing peak of Rs 617.
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