Swiggy shares fall over 4% after 6.5 crore shares free up for trade post lock-in ending – CNBC TV18

Shares of food delivery aggregator Swiggy Ltd. fell as much as 4.5% on Wednesday, December 11 as the one-month lock-in period of its shares ended.

As many as 6.5 crore shares of Swiggy became eligible to trade after the end of this lock-in period.

The number of shares amount to 3% of Swiggy’s outstanding equity.

It must be specified that the end of a lock-in period does not mean that all the shares will be sold, but they only become eligible to be traded.

Swiggy had made its stock market debut on November 13, listing at a 5.6% premium to its issue price and ended the first trading day with gains of 17%.

The stock has risen close to 40% from its IPO price since then.

Brokerage firm CLSA had initiated coverage on Swiggy on Tuesday with an “outperform” recommendation and a price target of ₹708, which implies a potential upside of 31%.

This is also the highest price target for Swiggy on the street.

Although the brokerage expects Swiggy to continue lagging its peer Zomato, it believes that this gap is in Swiggy’s price already.

Swiggy’s ₹11,327 crore IPO was subscribed 3.59 times during its three-day offering. The issue is the second-highest IPO by size for 2024, after Hyundai’s ₹27,000 crore issue.

Shares of Swiggy are trading 4.4% lower at ₹519.95.