Key Points
Swiggy's valuation drops nearly 50% from peak
Stock trades 14.2% below listing price
Tech IPO market experiencing significant challenges
Continuous share unlocking impacts stock performance
The online food aggregator's valuation, which soared past $16 billion or nearly Rs 1,32,800 crore in December 2024, has dropped to $9.82 billion or Rs 81,527 crore on the National Stock Exchange (NSE).
This is also a fall of over 30 per cent from its $12.7 billion listing valuation.
Additionally, its stock also continues to face heavy selling pressure, trading 14.2 per cent below its listing price.
The stock, which made its debut at Rs 420 per share on NSE and Rs 412 per share on the Bombay Stock Exchange (BSE) in November 2024 is now trading at Rs 360.
So far in 2025, Swiggy's investors have lost Rs 40,250 crore due to the stock's continuous sharp decline.
Investors have been offloading the stock, especially after the company's Q3 earnings fell short of expectations. The firm reported a Rs 799.08 crore net loss in the October-December period (Q3 FY25), compared to a loss of Rs 625.53 crore in the previous quarter (Q2).
Another key reason behind the stock's decline is the unlocking of shares post-listing.
Several tranches of Swiggy shares were freed up in the weeks after the IPO. On January 29, 2.9 million shares became available, followed by 300,000 more on January 31.
Another 100,000 shares were unlocked on February 19, and the biggest tranche of 65 million anchor investor shares was released on February 10.
While no significant bulk transactions have been recorded, the stock price has been sliding continuously, hitting an all-time low of Rs 323 on February 14.
The overall market sentiment towards tech IPOs has also weakened. Out of the 12 tech stocks that have debuted in the past two years, at least five are currently trading below their IPO price.
