New Delhi: Shares of food delivery and quick-commerce major Swiggy plunged 5 per cent on the bourses on Wednesday as investors booked profits after the one-month lock-in period for anchor investors expired. The company scrip declined 5 per cent each on the BSE and the National Stock Exchange (NSE) to Rs 515.95 and Rs 516.50 apiece, respectively. The market valuation of Swiggy dropped to Rs 1.16 lakh crore on the BSE.
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Following the lock-in expiry, as many as 6.5 crore shares of Swiggy, or a 3 per cent equity stake in the company, became eligible to trade, opening the doors for the investors to go ahead and sell 50 per cent of their holdings. The lock-in period for the remaining 50 per cent of shares owned by anchor investors ends on February 9. The 30-share BSE Sensex rose 98.71 points or 0.12 per cent to 81,608.76, while NSE Nifty advanced 45.65 points or 0.19 per cent to 24,655.70 in the morning trade. Last month, the company's scrip listed with a premium of nearly 17 per cent on the exchanges.
Swiggy's Rs 11,327-crore initial public offer was fully subscribed on the final day of the share sale, ending with 3.59 times subscription. Swiggy's Instamart is competing against Zomato-backed Blinkit and another major player like Zepto in quick commerce.
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Bolstering its position, Swiggy CEO Sriharsha Majety said that they are expecting solid growth for the next 3-5 years. They are also expanding the company's geographical footprint and store network for the Instamart business. Sriharsha Majety further noted that the company will continue to invest in various categories.
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