Swiggy share price surged over 12% on Monday following the announcement that its quick-service food delivery vertical, Bolt, has expanded operations to more than 500 cities across India. The development comes just a day after rival Zomato revealed plans to shut down its 10-minute food delivery service, Instant (formerly Quick), citing limited demand and challenges in achieving profitability.
Swiggy share price is expected to experience heightened volatility in the near term, driven by market speculation surrounding potential exits by certain pre-IPO shareholders. The mandatory six-month lock-in period for non-promoter, pre-IPO investors is set to expire on May 12, 2025.
Post expiry, approximately 83% of Swiggy’s shareholding, equivalent to 189.75 crore equity shares, will become eligible for trading starting May 13. The total value of currently locked-in shares is estimated at around ₹62,000 crore.
Swiggy made its debut on Indian stock exchanges on November 13, 2024. Swiggy shares were listed at ₹420 on the NSE, reflecting a 7.7% premium over the issue price of ₹390, and at ₹412 on the BSE, a 5.64% premium. The ₹11,327.43 crore worth initial public offering (IPO) of the food delivery and quick-commerce company was open from November 6 to November 8.
While the timing and scale of any potential exits remain uncertain, analysts note that several pre-IPO shareholders are sitting on significant unrealised gains.
“While a few investors had partly liquidated their positions pre-IPO as well as during the IPO, we believe at least some investors will be eager to liquidate their holding despite the fact that the Swiggy stock is trading below its IPO price,” JM Financial said in a note. “So, a sizable proportion of Swiggy’s shares can get traded in the near term.”
The brokerage further estimated that even if only 15% of eligible shares are offloaded immediately after the lock-in expiry, the resultant outflows could total around ₹12,000 crore (approximately $1.4 billion), comparable to Swiggy’s total IPO size.
Swiggy Share Price Outlook
JM Financial continues to value Swiggy’s core food delivery business at 45x EV/ FY27E Adjusted EBITDA. For its quick-commerce arm, Instamart, the firm applies a 1x EV/ FY27E Gross Order Value (GOV) multiple. Its other businesses are valued using 0.9x EV/GOV FY27E for out-of-home consumption and 0.5x EV/Sales for supply chain and distribution operations.
The brokerage maintains a ‘Buy’ rating on Swiggy shares, with a sum-of-the-parts (SOTP) based target price of ₹500 per share for March 2026.
“Long-term investors can use these liquidity events to build a sizeable position in Swiggy as, at current market price, the market seems to accord value to only its food delivery business, whereas Instamart and other businesses are not getting any meaningful value,” JM Financial said.
At 3:05 PM, Swiggy share price was trading 11.81% higher at ₹341.40 apiece on the BSE.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
