Swiggy shares down 7% as lock-in period for 83% shareholding expires; key details 

Swiggy Ltd tumbled 7 per cent to hit sub-Rs 300 level in Tuesday's trade on the expiry of its pre-IPO shareholder lock-in period. A few brokerages had earlier warned of near-term volatility on the counter due to this looming development.

Non-promoter and pre-IPO investors are subject to a mandatory six-month lock-in period following the listing of a company’s shares on the stock exchanges. In Swiggy’s case, this lock-in period expired on May 12, making 83 per cent of the company’s shareholding eligible for secondary market trading for the first time. These shares are available for trade starting May 13 i.e. today.

By 10.40 am, the Swiggy stock had fallen 7.33 per cent to hit a low of Rs 297 on BSE. With this, the scrip is now down 44 per cent for 2025 so far.

Given Swiggy's recent performance and basis past actions of pre-IPO investors -- mainly PE/VC/Chinese investors across listed Internet names, JM Financial in its April note said a sizeable proportion of Swiggy’s stock can get traded in a not-so-distant future post lock-in expiry, despite the fact that the stock is trading well below its IPO price. 

JM Financial admitted it cannot accurately predict when these Pre-IPO shareholders will exit, or whether they will even exit, but said it was pertinent to note that several of them are already sitting on significant unrealised gains. 

"While a few 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 stock is trading below its IPO price. So, a sizeable proportion of Swiggy’s shares can get traded in the near term," it said earlier. 

Swiggy target prices, outlook: What stock brokers say 

Anand Rathi, meanwhile, has a 12-month target of Rs 400 on the stock. The domestic brokerage this week noted Instamart continued to lag Blinkit in both growth and incremental unit economics, as it raised estimate for quick commerce losses for Swiggy. The brokearge expects Swiggy to now turn profitable by FY28 against FY27 earlier.  

"Overall, Swiggy has delivered higher revenue growth than Zomato in food delivery for a second consecutive quarter. However, in Quick Commerce, Blinkit continues to grow faster than Instamart despite being nearly 2 times its size. The management highlighted elevated competitive intensity in the segment and revised contribution margin breakeven guidance from 3 quarters to 3–5 quarters from now," Nuvama said post Swiggy's Q4 results. It did not rate the stock.

MOFSL, which has a neutral rating on the stock said the profitability estimates for FY26 and FY27 have been hit by intensive competition and dark store expansion. It values the Swiggy stock at Rs 340.

"We maintain BUY on Swiggy with three-stage DCF-based target price of Rs 740. Risks include a slowdown in discretionary spending and negative externalities disrupting business operations," ICICI Securities said.