Swiggy Shares Jump Nearly 5% As Jefferies Sees 60% Upside
Shares of foodtech major Swiggy surged nearly 5% to hit an intraday high of ₹285.35 apiece on the BSE on…
Swiggy's shares rose nearly 5% to reach an intraday high of ₹285.35 on the BSE after Jefferies upgraded the stock with a 'Buy' rating and highlighted a potential 60% upside. This positive outlook came after shareholders approved a cap of 49.5% for foreign ownership and changes to the company's Articles of Association, allowing Swiggy to obtain Indian-owned and controlled company (IOCC) status under FEMA regulations.
The brokerage firm sees this move as a step towards Swiggy's transition to a first-party, inventory-led model for Instamart, which could provide around 80 basis points of margin upside. While the cap may mitigate regulatory risks, passive outflows are expected once the new foreign ownership framework is implemented, potentially taking a few weeks to materialize. Swiggy's market capitalization stands at ₹77,385.3 Cr (approximately $8.1 Bn).
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