Swiggy Share Price Drops Below IPO Value – Investment Opportunity or More Fall Ahead?

Swiggy share price is lower than its IPO price. Is this a buying opportunity or will the price go even lower?

India’s top online food and grocery platform, Swiggy, is getting notice since its share price has fallen. Anyone who bought shares during the IPO is losing money, as the price on the market has dropped below the IPO price. Now, the question is whether now is the best time to invest in Swiggy or will the price drop lower.

We will take a look at the present share price of Swiggy, along with insights from analysts for the coming months.

Swiggy Share Price – Fully Traded at Less than IPO Price

Swiggy was listed on the Indian stock market on 13th November 2024 at an IPO price of ₹390. Still, as of 16th May 2025, the share is listed on the Bombay Stock Exchange at ₹321.15. Swiggy’s stock has gone down by approximately 17% from what it was priced at during its initial public offering.

Many investors are now concerned due to the falling price. However, some experts believe that the current market could be an excellent opportunity for those buying a home to live in for years.

Anand Rathi Brokerage Keeps Urging Investors to ‘Buy’

Even during this drop, Anand Rathi tells clients that stock in Swiggy is still worth purchasing. The firm thinks Swiggy remains a major player in food delivery and that it can be bought at a discount compared to Zomato.

It is also pointed out that Swiggy has done well recently, particularly in the food delivery business.

Growth in the Food Delivery Segment

Swiggy delivered healthy growth in its food delivery business this March. The GOV increased by 17.6% when compared to last year’s statistics. The growth in GOV for Zomato was 15.9% which is less than the average.

The Bolt initiative from Swiggy helps the company to grow by delivering food within 10 to 15 minutes. More and more, people are using this fast delivery service. In fact, Bolt added more to the total order volume, from 9% in December to over 12% in March.

Higher Margins – Yet, There Are Still Losses

Swiggy managed to increase its profits in food delivery.

• The adjusted margin went up by 4.2 percentage points to 2.9% during the March quarter.
• The value of Contribution Margin rose by 0.4 percentage points and is currently 7.8%.

The company’s quick commerce business is still causing losses. Such high investments are lowering the company’s net income. Actually, the adjusted margin loss rose from 14.6% to nearly 18% in the March quarter.

According to experts, these losses may fall in the next few quarters. Experts believe Swiggy will break even in contribution margin within the next 3 to 4 quarters.

Profitability timeline pushed further and is now estimated for FY28

It has previously been forecast that Swiggy would be profitable by FY27. Now, with growing losses in quick commerce, they are hoping to become profitable in FY28.

Nevertheless, Anand Rathi believes that the hardest days are behind TCS and backs the stock on these grounds:

• The valuation of Swiggy is less than that of Zomato.
• Steady and fast growth in the food delivery sector

They expressed that the stock should be worth ₹400, even though it is currently lower in value.

Also Read : Top Gainers and Losers Today: These 10 Stocks Moved the Market Strongly

How Has the Price of Swiggy Shares Changed over the Last Year?

On December 23rd, 2024, the highest share price recorded for Swiggy was ₹617.00. In only 5 months, the stock declined sharply. On that day, the stock was trading at just ₹297.00, its lowest level ever, a fall of 51.86% from its record high.

It is worth noting that the stock has gained 8.87% in relation to its recent low, as it is trading at ₹321.15 now. However, its value is still 47.59% lower than the highest it reached in the past year and 17.09% below the price when it first launched.

Is it the right time to buy Swiggy shares?

With the stock price decreasing from the IPO and its 52-week high, Swiggy might have value for people willing to hold their investments for a while. The company is performing well in food delivery and improving their profit level. Its same-day delivery option is becoming popular, despite not making a profit.

According to experts, if Swiggy manages to control its losses and maintain its development, the company’s stock could achieve strong growth over the coming years.

On the other hand, investors must pay careful attention to the dangers. The stock market is not certain and this means Swiggy will take more time to become profitable. Short-term variations are expected to stay in the market.

Final Thoughts

Many investors are wondering if this is the best moment to purchase Swiggy shares since the company’s stocks are trading at a lower price. Those who commented on the subject, including Anand Rathi, believe Swiggy can do very well as opposed to Zomato. Food delivery is on the rise and Allied is focusing on increasing its profits.

While it could take time for the company to improve financially, investors who believe in its future may decide to invest now.

As always, I recommend researching or talking to a financial expert if you want to consider an investment.