Swiggy's shares were listed on the National Stock Exchange (NSE) at ₹420. However, due to market downturn, the share is now trading around ₹360.
Business News: Food delivery and quick commerce giant Swiggy is experiencing a significant drop in its share price. After listing at ₹420, the company's share price has fallen to ₹360. This decline has dealt a major blow to investors, as Swiggy's valuation has decreased by over ₹50,000 crore.
Significant Valuation Drop Since IPO
Swiggy's IPO was launched in November 2024, and by December 2024, its valuation reached ₹1,32,800 crore (USD 16 billion). However, since then, the company's share price has continuously declined. By February 21, 2025, Swiggy's valuation had dropped to ₹81,527 crore (USD 9.82 billion), representing a decrease of ₹51,273 crore.
Main Reasons for the Decline
1. Weak Quarterly Results: In the third quarter of fiscal year 2025, Swiggy reported a loss of ₹799.08 crore, exceeding the previous quarter's loss of ₹625.53 crore. These weak results have eroded investor confidence.
2. Lock-in Period Expiration
* 2.9 million shares unlocked on January 29.
* 300,000 shares entered the market on January 31.
* The highest number of shares unlocked, 65 million, occurred on February 10.
* An additional 100,000 shares were unlocked on February 19.
3. Increasing Competition: Intense competition from Zomato, Blinkit, and other quick commerce companies has impacted Swiggy's market share.
4. Impact of Market Downturn: Fluctuations in global and Indian stock markets have also affected Swiggy's stock.
A Warning Sign for New Investors?
Swiggy's stock has fallen by more than 33%, creating uncertainty for new investors. Experts believe that if the company fails to improve its financial performance, its share price could decline further. Analysts suggest that Swiggy's stock remains risky for long-term investors. However, if the company improves its operational performance and controls its losses, a recovery might be seen in the coming months.
