Swiggy Stock Plummets 1.78% Amid Board-Approved Asset Fire Sale and Corporate Overhaul
Swiggy's board greenlights massive asset liquidation and structural shakeup—sending shares tumbling nearly 2% in a single session.
Market Reaction Speaks Volumes
Investors dumped Swiggy positions faster than expired food delivery orders as the company unveiled plans to sell off major assets and reconfigure its entire operational framework. The 1.78% drop signals deep market skepticism about the restructuring strategy.
Restructuring Roulette
Corporate overhaul moves rarely inspire confidence when accompanied by immediate shareholder value destruction. The board's approval of significant asset sales suggests either desperate cash needs or strategic confusion—neither scenario comforts investors watching their positions evaporate.
Another reminder that traditional equity markets remain glorified casinos with better PR.
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Swiggy sells entire 12% stake in Rapido for ₹2,399 crore to Prosus, Westbridge
However, Macquarie struck a cautious note with an underperform rating and ₹285 target. While acknowledging the Rapido sale boosts net cash to over $850 million, the brokerage warned that the Instamart slump sale signals potential external funding needs, estimating annual EBITDA losses of $400-450 million.
The September 23 board meeting approved selling 10 equity shares and 163,990 preference shares in Rapido to MIH Investments One B.V. (₹1,968 crore) and 35,958 preference shares to Westbridge (₹431.5 crore). The MIH transaction involves a related party as Prosus group entity MIH India Food Holdings holds 23.31 per cent in Swiggy and has two nominee directors on the board.
The Instamart transfer involves moving the quick commerce business, which contributed 24.21 per cent of standalone revenue in FY25, to step-down subsidiary Swiggy Instamart Private Limited. The slump sale, subject to shareholder approval, is expected after Q3 FY26 and will be based on book value of assets. Both transactions require Competition Commission approval.
Published on September 24, 2025
