Swiggy stock plunges 5% amid profit booking, anchor lock-in ends

New Delhi: Shares of food delivery and quick-commerce major Swiggy plunged 5 per cent on the bourses on Wednesday as investors booked profits after the one-month lock-in period for anchor investors expired.

The scrip of the company declined 5 per cent each on the BSE and the National Stock Exchange (NSE) to Rs 515.95 and Rs 516.50 apiece, respectively.

The market valuation of Swiggy dropped to Rs 1.16 lakh crore on the BSE.

Following the lock-in expiry, as many as 6.5 crore shares of Swiggy, or a 3 per cent equity stake in the company, became eligible to trade, opening the doors for the investors to go ahead and sell 50 per cent of their holdings.

The lock-in period for the remaining 50 per cent shares owned by anchor investors ends on February 9.

The 30-share BSE Sensex rose 98.71 points or 0.12 per cent to 81,608.76, while NSE Nifty advanced 45.65 points or 0.19 per cent to 24,655.70 in the morning trade.

Last month, the scrip of Swiggy listed with a premium of nearly 17 per cent on the exchanges.

The Rs 11,327-crore initial public offer of Swiggy got fully-subscribed on the final day of the share sale on Friday, ending with 3.59 times subscription.

In quick commerce, Swiggy's Instamart is competing against Zomato-backed Blinkit and another major player like Zepto.

To bolster its position, Swiggy CEO Sriharsha Majety had said, "We are expecting very solid growth for the next 3-5 years. We are expanding our geographical footprint, stores network for Instamart business."

Majety further noted that the company will continue to invest in various categories.