Shares of Swiggy Ltd declined nearly 1% in early trade on Wednesday, September 24, following the sale of its 12% stake in Rapido and a restructuring move involving its quick commerce arm, Instamart. As of 9:55 a.m., the stock was trading at ₹444.2, down 1.1% on the NSE.
Swiggy, which acquired a 12% stake in Rapido for around ₹1,000 crore in April 2022, has now exited the investment, selling its stake to Prosus and Westbridge for approximately ₹2,400 crore. This move significantly boosts Swiggy’s cash reserves, helping it manage ongoing losses in its quick commerce segment.
Additionally, Swiggy has approved, subject to shareholder consent, the transfer of its Instamart business to a wholly owned step-down subsidiary, Swiggy Instamart Private Limited, through a slump sale. Nomura noted this restructuring aligns with Swiggy’s path to becoming an Indian Owned and Controlled Company (IOCC), which would allow Instamart to operate an inventory-led model.
Nomura maintained a “Buy” rating with a ₹550 target, while Morgan Stanley retained its “Overweight” stance with a ₹450 target, citing stronger balance sheet positioning and alignment with management strategy as positives.
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