Swiggy slides as lock-in period ends

Swiggy tumbled 2.75% to Rs 311.70 as the mandatory six-month lock-in period for pre-IPO investors came to an end on 12 May 2025.

The stock plunged as much as 7.33%, hitting a record low of Rs 297 today. For context, the company made its market debut on 13 November 2025, with shares listing at Rs 412a modest 5.64% premium over its IPO price of Rs 390. From a post-listing high of Rs 617, the stock has now halved.

With the lock-in curtain lifted, a whopping 189.75 crore equity sharesroughly 83% of Swiggys total shareholdingbecame eligible for trading. These shares, previously under wraps, are estimated to be worth nearly Rs 62,000 crore.

When a company goes public, early investorsthink promoters, employees, and venture capital backersare typically barred from selling their holdings for a certain period (usually 6-12 months for pre-IPO investors, and 90-180 days for employees). This buffer helps prevent a sudden mass sell-off that could destabilize the stock.

Now that the restriction is gone, these shareholders can head to the marketthough whether they will is another question. The end of the lock-in doesnt guarantee a sell-off, but it opens the door for one.

Swiggy is Indias pioneering on-demand convenience platform. With a footprint in food delivery, Swiggy Food collaborates with over 2.5 lakh restaurants across ~700 cities. Swiggy Instamart, its quick commerce platform operating in 120+ cities, delivers groceries and other essentials across 20+ categories in 10 minutes.

Swiggy reported a net loss of Rs 1,081.18 crore for the quarter ended March 2025 (Q4 FY25), nearly doubling from Rs 554.77 crore in the same quarter last year. Revenue from operations rose 44.8% year-on-year to Rs 4410.02 crore in Q4FY25. The company's widening losses were primarily attributed to elevated spending on its quick commerce arm, Instamart. Swiggy increased investments in customer acquisition, dark store infrastructure, and marketing efforts amid intensifying competition, resulting in higher operating expenses.

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