Shares of food and grocery delivery company Swiggy sank 6% to a 52-week low on Tuesday morning, after the six-month IPO lock-in period for pre-IPO shareholders ended.
What lock-in expiry means
As the lock-in period expired on May 12, approximately 83% of Swiggy's shares, valued at around $7.7 billion at the current market price, became tradeable. This could lead to a surge in selling pressure as early investors look to cash in on their bets, potentially triggering significant volatility in the stock, according to a JM Financial report.
During the lock-in period, certain shareholders, typically pre-IPO investors, employees, or promoters, are restricted from selling their shares after the company goes public, to prevent sudden share dumps.
The period is usually 6-12 months for pre-IPO investors and promoters, and 90-180 days for employees. After it expires, shareholders can sell their shares, potentially impacting the stock price.
The share price of Swiggy’s rival Zomato, now Eternal, had dipped 23% after its lock-in expiry in 2022, while Nykaa's stock had plummeted 13%.
Gains or no?
According to JM Financial, many of Swiggy’s pre-IPO investors may be sitting on substantial unrealised gains. Some of them had partly liquidated their positions in the run-up to the IPO, but continue to hold a big chunk, the report said.
As per the report, the following investors have substantial holdings:
Investor: Unrealised stake value
"Given the quantum of these gains and basis past actions of pre-IPO investors (mainly PE/VC/Chinese investors) across listed Internet names, we believe a sizeable proportion of Swiggy’s stock can get traded in a not-so-distant future post lock-in expiry, despite the fact that the stock is trading well below its IPO price," the report stated.
Financials
The stock also remains under pressure because of Swiggy's net loss almost doubling to Rs 1,081 crore during the January-March quarter. This was on the back of the aggressive expansion of its quick commerce network during the period, when it added nearly four dark stores per day.
Growth in quick commerce also pushed the company’s consolidated operating revenue, which rose 45% year-on-year (YoY), to Rs 4,410 crore.
A broader slowdown and a seasonally weak quarter caused Swiggy’s food delivery business to grow 17.6% YoY in terms of GOV, at the lower end of its 18-22% growth guidance.
Stock run
Swiggy went public in November 2024 at Rs 412 on the BSE, a 7% premium over its IPO price of Rs 390. However, the stock has had a rough time on the bourses, plummeting about 39% since then. In 2025 alone, the scrip has lost 41% of its value.
The Swiggy stock slipped under its IPO price in February, mirroring a trend affecting other new-age companies that went public in 2024.
What lock-in expiry means
As the lock-in period expired on May 12, approximately 83% of Swiggy's shares, valued at around $7.7 billion at the current market price, became tradeable. This could lead to a surge in selling pressure as early investors look to cash in on their bets, potentially triggering significant volatility in the stock, according to a JM Financial report.
During the lock-in period, certain shareholders, typically pre-IPO investors, employees, or promoters, are restricted from selling their shares after the company goes public, to prevent sudden share dumps.
The period is usually 6-12 months for pre-IPO investors and promoters, and 90-180 days for employees. After it expires, shareholders can sell their shares, potentially impacting the stock price.
The share price of Swiggy’s rival Zomato, now Eternal, had dipped 23% after its lock-in expiry in 2022, while Nykaa's stock had plummeted 13%.
Gains or no?
According to JM Financial, many of Swiggy’s pre-IPO investors may be sitting on substantial unrealised gains. Some of them had partly liquidated their positions in the run-up to the IPO, but continue to hold a big chunk, the report said.
As per the report, the following investors have substantial holdings:
Investor: Unrealised stake value
- Prosus: Rs 20,220 crore
- SoftBank: Rs 6,010 crore
- Accel India: Rs 3,290 crore
- Elevation: Rs 2,150 crore
- Tencent: Rs 2,600 crore
"Given the quantum of these gains and basis past actions of pre-IPO investors (mainly PE/VC/Chinese investors) across listed Internet names, we believe a sizeable proportion of Swiggy’s stock can get traded in a not-so-distant future post lock-in expiry, despite the fact that the stock is trading well below its IPO price," the report stated.
Financials
The stock also remains under pressure because of Swiggy's net loss almost doubling to Rs 1,081 crore during the January-March quarter. This was on the back of the aggressive expansion of its quick commerce network during the period, when it added nearly four dark stores per day.
Growth in quick commerce also pushed the company’s consolidated operating revenue, which rose 45% year-on-year (YoY), to Rs 4,410 crore.
A broader slowdown and a seasonally weak quarter caused Swiggy’s food delivery business to grow 17.6% YoY in terms of GOV, at the lower end of its 18-22% growth guidance.
Stock run
Swiggy went public in November 2024 at Rs 412 on the BSE, a 7% premium over its IPO price of Rs 390. However, the stock has had a rough time on the bourses, plummeting about 39% since then. In 2025 alone, the scrip has lost 41% of its value.
The Swiggy stock slipped under its IPO price in February, mirroring a trend affecting other new-age companies that went public in 2024.
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