Food delivery platform Swiggy saw its share price fall over 5% in early trading on Wednesday. At 1:20 pm, Swiggy was trading 3.30% lower at Rs 525.80 on the BSE.
The fall in the share prices came on the heels of the expiry of the lock-in period for anchor investors.
The stock dipped as much as 5.07% to Rs 515.95 on the BSE. The fall also wiped out its previous sessionโs gains.
Swiggy made its market debut on November 13, and the one-month lock-in period for anchor investors ended on Wednesday, December 11.
Under the rules, anchor investors are permitted to sell up to 50% of their holdings one month after listing.
This means 6.5 crore shares, equivalent to a 3% stake in the company, are now eligible for trading. The remaining 50% of anchor investorsโ shares will become eligible for sale on February 9.
Itโs important to note that the lock-in expiry doesnโt automatically result in all shares being sold. It only makes them tradable.
Swiggy Share Price Performance
Swiggy shares debuted last month at Rs 420 per share, a 7.69% premium over the issue price of Rs 390. Since then, the stock has gained more than 35% from its issue price, even after Wednesdayโs decline
In the previous session, Swiggy shares rallied after global brokerage CLSA initiated coverage with an โoutperformโ rating and set a target price of Rs 708 per share.
CLSA cited expectations of stronger execution, accelerating growth, and profitability. They project a FY27 TAM of $16 billion for food delivery and $27 billion for quick commerce, with Swiggyโs GOV and revenue expected to grow at a CAGR of 43% and 32% from FY24 to FY27.
