Swiggy share price falls over 5% after one-month anchor lock-in period ends
- Swiggy shares have seen a decent rally since listing and the stock is up more than 35% than its issue price. After today’s fall in Swiggy shares, the stock still trades more than 30% higher from its IPO price.
Swiggy share price declined over 5% in early trade on Wednesday after the lock-in period for anchor investors expired today. Swiggy share dropped as much as 5.07% to ₹515.95 apiece on the BSE, erasing all of its previous session’s gains.
Swiggy shares made their stock market debut on November 13 and the one month lock-in period for anchor investors ended today, December 11. Anchor investors can sell 50% of shares held by them after one month of listing.
Therefore, after the lock-in expiry, as many as 6.5 crore Swiggy shares, representing a 3% stake in the company, became eligible to trade. The lock-in period for the remaining 50% shares of anchor investors will end on February 9.
However, it is to be noted that the end of the lock-in period does not mean that all the shares of anchor investors will be sold. Instead, they only become eligible for trading in the market.
Swiggy share price trend
Swiggy share price made a decent debut last month as the stock was listed at ₹420 per share, a premium of 7.69% to the issue price of ₹390, on NSE.
Swiggy shares have seen a decent rally since listing and the stock is up more than 35% than its issue price. After today’s fall in Swiggy shares, the stock still trades more than 30% higher from its issue price.
In the previous session, Swiggy stock price saw a decent rally after global brokerage firm CLSA initiated its coverage on the stock with an ‘outperform’, setting a Swiggy share price target price of ₹708 apiece.
According to CLSA, Swiggy could see improved execution with accelerating growth and profitability. It estimates food delivery and quick commerce to have a FY27 TAM (total addressable market( of $16 billion and $27 billion, respectively.
CLSA expects Swiggy’s GOV and revenue to grow at a CAGR of 43% and 32% in FY24-27.
At 10:15 am, Swiggy shares were trading 4.40% lower at ₹519.65 apiece on the BSE.
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