Swiggy shares dropped 1.78% to ₹441.20 during Wednesday afternoon trading, despite the company announcing substantial asset monetization and corporate restructuring initiatives totaling over ₹2,400 crore. The stock began at ₹458.20 but experienced a decline throughout the session due to significant selling pressure, with sell quantities exceeding buy quantities by a factor of four.
Analysts hold mixed views on the implications of the board’s decisions made on Monday. Morgan Stanley retained an overweight rating with a target of ₹450, viewing the ₹1,968 crore stake sale in Rapido as a move to strengthen the balance sheet in line with management’s strategy. Conversely, Nomura expressed more optimism, assigning a buy rating and a target of ₹550. They believe that the restructuring of Instamart will position the quick commerce unit to take on inventory ownership once Swiggy achieves a majority domestic market share.
However, Macquarie adopted a more cautious stance, giving an underperform rating and a target of ₹285. While they acknowledged that the Rapido sale raises net cash to over $850 million, they warned that the slump sale of Instamart may indicate a need for external funding, estimating annual EBITDA losses between $400-450 million.
On September 23, the board approved the sale of 10 equity shares and 163,990 preference shares in Rapido to MIH Investments One B.V. for ₹1,968 crore, alongside 35,958 preference shares to Westbridge for ₹431.5 crore. Notably, the MIH transaction involves a related party, as the Prosus group entity MIH India Food Holdings holds a 23.31% stake in Swiggy and has two nominee directors on its board.
The transfer of Instamart will involve relocating the quick commerce division, which accounted for 24.21% of standalone revenue in FY25, to its step-down subsidiary, Swiggy Instamart Private Limited. This slump sale, pending shareholder approval, is anticipated after Q3 FY26 and will be based on the book value of the assets. Both transactions will also require approval from the Competition Commission.
Published on September 24, 2025.
