Swiggy Shares Today: Shares of Swiggy Ltd were in focus on Wednesday as the food delivery major unveiled a significant rejig of its portfolio to shore up liquidity. The company’s board approved the sale of its entire 11.8 per cent stake in cab-aggregator Rapido for a combined Rs 2,398 crore and also transferred its quick-commerce arm Instamart to a wholly owned subsidiary.
According to the filing, Swiggy will sell 10 equity shares and 1,63,990 Series D CCPS in Rapido to MIH Investments One B.V.—a Netherlands-incorporated firm—for Rs 1,968 crore. A further 35,958 Series D CCPS will be sold to Setu AIF Trust (Westbridge) for Rs 430 crore.
JP Morgan price target on Swiggy
The stake sale is in line with what Swiggy had guided at the end of the June quarter. Brokerages see the proceeds helping the company extend its quick-commerce runway at a time of intense competition and high cash burn.
Add Zee Business as a Preferred Source
JPMorgan, which has an ‘Overweight’ rating on Swiggy with a Rs 470 price target, said the transaction “bolsters the balance sheet and extends Instamart’s burn runway by up to six quarters,” reducing the near-term need for fund-raising.
JM Financial flags fund-raising need
Not all analysts are upbeat. JM Financial downgraded Swiggy to “reduce” from “hold” and trimmed its price target to Rs 420 per share, arguing that the company still needs a far larger war chest—possibly over $500 million—to sustain its aggressive marketing and subsidy strategy. The brokerage noted that Swiggy’s competitor Blinkit has been expanding faster despite Instamart’s recent 100 per cent gross order value growth.
Swiggy has posted five consecutive quarters of widening losses, totalling Rs 6,600 crore over the last nine quarters, with Rs 2,278 crore lost in the most recent quarter alone.
Instamart shifted to wholly owned unit
Separately, the board approved the sale and transfer of Instamart to Swiggy Instamart Pvt Ltd, an indirect step-down wholly owned subsidiary, via a slump sale. The move is designed to give the quick-commerce arm its own structure for future expansion or capital raising.
Swiggy stock performance
Swiggy shares ended the previous session flat at Rs 449.95 apiece. The stock has gained 28 per cent over the past six months but remains down 17 per cent so far this year.
