Swiggy's stock drops 6% in the largest one-day decline in more than two months.

The shares of the well-known food delivery aggregator Swiggy fell 5.64% during intraday trading on Friday, April 25, reaching a one-week low of ₹321.40 each. Additionally, the drop was the largest one-day drop in Swiggy's stock price since February 14.

Due to market speculation on potential withdrawals by certain pre-IPO owners whose lock-in term expires on May 12, 2025, the stock has been volatile in recent trading sessions. In accordance with SEBI requirements, non-promoter pre-IPO investors must wait six months after the company is listed on the exchanges. According to a recent note from domestic brokerage JM Financial, after the lock-in period is over, 83% of Swiggy's shares would be available for secondary trading for the first time. This indicates that those shares will be traded starting on May 13. Several pre-IPO investors are sitting on substantial, multi-fold returns, according to the brokerage's estimate of the cost of acquiring shares held by these investors. A sizable amount of those gains are still unrealized, even though some investors partially sold their holdings at the IPO and in the days preceding the listing.

Regarding the fundamentals, JM Financial anticipates that Swiggy's adjusted EBITDA loss from its Instamart rapid commerce segment will rise soon. Due in major part to a dramatic increase in the number of dark stores and increased competition, the loss is expected to increase from ₹5.8 billion in Q3 to ₹7.8 billion in Q4.