Swiggy Shares: Pre-ipo Shareholders’ Lock-in Expiry To Weigh On Stock Performance, Says Jm

JM Financial successful a caller statement warned that shares of Swiggy whitethorn move volatile successful nan adjacent word connected relationship of marketplace speculation around imaginable exits by immoderate pre-IPO shareholders, whose lock-in is group to expire connected May 12. 

To recall, non-promoter, pre-IPO investors are required to spell done a mandatory lock-in of six months station listing of their banal connected nan exchanges. Accordingly, 83 per cent of Swiggy’s shareholding will beryllium eligible for secondary waste and acquisition for nan very first clip erstwhile nan lock-in for these investors expires connected May 12, will shares disposable for waste and acquisition from May 13 onwards.

Given Swiggy's caller capacity and ground past actions of pre-IPO investors -- chiefly PE/VC/Chinese investors crossed listed Internet names, JM Financial said a sizeable proportionality of Swiggy’s banal tin get traded successful a not-so-distant early station lock-in expiry, contempt nan truth that nan banal is trading good beneath its IPO price. 

At nan prevailing price, nan banal is trading 12 per cent beneath nan IPO value of Rs 390.

JM Financial admitted it cannot accurately foretell erstwhile these Pre-IPO shareholders will exit, aliases whether they will moreover exit, but said it is pertinent to statement that respective of them are already sitting connected important unrealised gains. 

"While a fewer had partially liquidated their positions pre-IPO arsenic good arsenic during nan IPO, we judge astatine slightest immoderate investors will beryllium eager to liquidate their holding contempt nan truth that nan banal is trading beneath its IPO price. So, a sizeable proportionality of Swiggy’s shares tin get traded successful nan adjacent term," nan brokerage said. 

JM Financial said nan full banal that is presently locked successful is 83 per cent, which astatine nan prevailing marketplace value is weighted astatine Rs 66,000 crore aliases $7.7 billion. 

"Even if 1 were to presume that only 15 per cent of company’s liking will beryllium disposable for waste and acquisition instantly station expiry, nan full outflows could beryllium Rs 12,000 crore ($1.4 billion), broadly adjacent to nan full IPO size of Rs 11,300 crore (USD 1.3 billion). Long-term investors tin usage these liquidity events to build a sizeable position successful Swiggy as, astatine CMP, nan marketplace seems to accord worth to only its nutrient transportation business, whereas Instamart and different businesses are not getting immoderate meaningful value," JM Financial said.
 

Published on: Apr 24, 2025 10:51 AM IST