Swiggy’s stock fell about 5% in early trading on Wednesday as investors were uneasy following the expiration of the company’s one-month lock-in period for pre-listing stockholders. According to a recent study by Nuvama Alternative and Quantitative Research, up to 6.5 crore shares—or 3% of Swiggy’s total outstanding equity—will be traded on the secondary market.
Shares of Swiggy have now increased by almost 33% since their IPO issue price. After international brokerage company CLSA began covering the stock with an outperform rating and a target price of Rs 708, the stock had increased by more than 5% in the previous session.
Anchor Investor Lock-In Expiry
Anchor investors were subject to a one-month lock-in period that concluded today, according to Swiggy, which debuted on the stock market on November 13, 2024. About 6.5 crore shares, or 3% of the company’s total value, become tradeable with this expiration.
After the first month following listing, anchor investors are allowed to sell up to 50% of their shares; the remaining 50% will be available for trading on February 9, 2025. However, it’s crucial to remember that not all eligible shares will be sold just because the lock-in period has ended. Rather, the shares simply become tradeable based on investor strategy and market opinion.
Swiggy Share Price Movement
On Wednesday, Swiggy made its market debut with great fanfare, opening at Rs 420 on the NSE and Rs 412 on the BSE, giving investors a premium above the IPO price. Swiggy’s stock ended the day trading at Rs 455.95 on the BSE and Rs 454 on the NSE, which is a gain of around 17% over the original offering price.
However, Swiggy’s stock dropped over 6% on November 14th, ending at Rs 454, reflecting early market sentiment instability. Near its peak of Rs 489.40, the stock fluctuated between Rs 418.60 and Rs 489.40. With a market valuation of Rs 964.1 billion, Swiggy currently has a sizable investor base that is both interested in the company’s growth potential and concerned about its profitability.
