Online food and grocery delivery major Swiggy's shares fell over 6% on May 13 a day after the mandatory IPO lock-in period for pre-IPO shareholders expired.
At 10 am on May 13, Swiggy's shares on BSE were trading 6% lower at Rs 301.55 apiece.
Nuvama has valued Swiggy’s shares worth over $7 billion, or 83% of Swiggy’s total outstanding stock, are expected to become available for trading on May 13, on the six-month lock-in expiry.
Swiggy's stock is likely to be volatile in the near-term on account of market speculation around possible exits by some pre-IPO shareholders whose lock-in is set to expire, domestic brokerage JM Financial had noted.
In fact, the total stock that is currently locked in is 83%, which is valued at Rs 66,000 crore. Even if one were to assume that only 15% of company’s stake will be available for trade immediately post expiry, the total outflows could be Rs 12,000 crore, broadly equal to the total IPO size of Rs 11,300 crore, added JM Financial.
Swiggy reported a consolidated loss of Rs 1,081 crore for the fourth quarter ended March 31, compared to a Rs 555-crore loss a year earlier.
Swiggy's food delivery business, mature and profitable on an EBITDA basis, saw adjusted revenue growth of nearly 20%.
After listing at Rs 420 in November, Swiggy's shares have lost about 25% of their value, in an environment where competitive intensity has ramped up.
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