Swiggy shares tumble 5% to drop below IPO price

Swiggy shares experienced further declines on Tuesday, dipping below their initial public offering (IPO) price of Rs 390 and reaching an intraday low of Rs 389.25, tumbling 5% on the BSE.

This marks a significant downturn for the food delivery aggregator, extending losses for the third consecutive session, leading to intensifying concerns about the company's near-term performance.

The stock's downward trend began last week, with declines of 2.7% on Friday, followed by a steeper 8.6% drop on Monday, and a further 5% fall on Tuesday. Over the past six trading sessions, Swiggy's stock has weakened in five, registering a cumulative loss of 18.75%.


This sustained decline reflects growing investor unease, particularly in light of recent industry developments.

Investor sentiment towards Swiggy has been negatively impacted by the recent financial report from its competitor, Zomato. Zomato's December quarter results highlighted a slowdown in its core food delivery business, raising questions about the sector's overall growth trajectory.

Adding to the pressure, Zomato announced accelerated investments in its quick commerce platform, Blinkit, signalling expectations of continued losses in that segment. This news has cast a shadow over Swiggy, as investors anticipate potential similar challenges in its upcoming quarterly results.

Swiggy is yet to announce the date for its board meeting to discuss and release its December quarter results. Market participants will be keenly looking forward to Swiggy’s performance and management’s outlook for the future.

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The upcoming earnings release will be crucial in determining whether Swiggy can alleviate investor concerns and regain positive momentum.

Swiggy share price performance

Over the past month, the shares of Swiggy have declined by 26.60%, reflecting a significant downward trend. Year-to-date (YTD), it has dropped by 26.08%. The last two weeks saw a decrease of 13.82%, while the past week recorded a decline of 8.98%.

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