On Tuesday, Swiggy shares experienced a significant decline, plummeting by over 7% to a historic low, largely driven by increased trading activity as the lock-in period for pre-IPO investors concluded. The stock hit a low of ₹297 on the BSE, marking a turbulent day for the popular food delivery and quick-commerce platform. This drop followed the expiration of a six-month lock-in period for non-promoter pre-IPO shareholders that ended on May 12, 2025.

The Impact of the Lock-In Period Expiration

The conclusion of the lock-in period allowed approximately 189.75 crore equity shares, representing nearly 83% of Swiggy’s total holdings, to enter the trading market starting May 13. The estimated value of these locked shares stood at around ₹62,000 crore, highlighting the scale of potential trading activity.

• Trading Volume Surge: Nearly 4 crore shares exchanged hands on Tuesday, significantly surpassing the average weekly trading volume of 1 crore shares.
• Investor Dynamics: The expiry does not guarantee immediate selling; it merely signifies that these shares can now be traded in the secondary markets.

Analyst Insights on Swiggy’s Performance

Market experts suggest that many pre-IPO investors are positioned with considerable unrealized gains. JM Financial noted last month that while some investors had partially sold their stakes both pre-IPO and during the IPO, it is likely that others will look to liquidate their holdings, despite the stock currently trading below its IPO price.

“Given the circumstances, a large percentage of Swiggy shares might be traded in the near term,” JM Financial remarked in a recent analysis.

Swiggy’s Q4 Financial Results

In its latest quarterly report, Swiggy revealed a significant increase in its net loss, nearly doubling from the previous year. Here are the highlights from Q4FY25:

• Net Loss: The company recorded a consolidated loss of ₹1,081.18 crore, compared to ₹554.77 crore in the same quarter of the prior financial year.
• Revenue Growth: Revenue from operations surged by 44.8%, reaching ₹4,410 crore, up from ₹3,045.55 crore year-on-year.
• Gross Order Value (GOV): The food delivery segment saw a GOV increase of 17.6%, totaling ₹7,347 crore, while Swiggy Instamart’s GOV skyrocketed by 101% year-on-year, reaching ₹4,670 crore in Q4FY25.

Future Outlook for Swiggy Shares

The share price of Swiggy has declined by 10% over the past month and 18% in the last three months. On a year-to-date basis, shares have dropped 45%, with a 34% decrease noted in the past six months.

JM Financial maintains a Buy rating on Swiggy shares, albeit with a revised target price of ₹450 per share, down from ₹500. The brokerage continues to value the food delivery segment at a 45x EV/FY27E Adj. EBITDA multiple.

Conclusion: A Potential for Long-Term Investment

While current market conditions may present challenges for Swiggy’s stock price, JM Financial suggests that long-term investors could consider this liquidity event as an opportunity to build a significant position. The current market valuation appears to focus primarily on its food delivery business, with other segments like Instamart not being fully appreciated.

As of 9:25 AM, Swiggy’s shares were trading 5.71% lower at ₹302.20 on the BSE. The unfolding situation presents both challenges and potential opportunities for savvy investors in the food delivery and quick-commerce sector.