Swiggy Shares Rise 2.5% as 4% Equity Changes Hands in Block Deals
Key Takeaways
- •Approximately 4% of Swiggy's equity changed hands through block deals, sending its shares up 2.53%.
- •MSCI will remove Swiggy from its global standard indices on September 7 due to foreign ownership limits.
- •Swiggy is pursuing Indian Owned and Controlled Company status to create more headroom for foreign investors.
- •The company's Q1 FY27 results showed a narrowed net loss of Rs 791 crore.
Shares of Indian food delivery company Swiggy rose 2.53% in trading after approximately 4% of the company's equity changed hands through block deals, which are large-volume, pre-negotiated trades typically executed in a single transaction on the exchange and often used by institutional investors to rebalance holdings.
The transactions come as the company faces removal from MSCI's global standard indices, scheduled for September 7, a decision attributed to foreign ownership limits on the stock. When a stock approaches its foreign ownership ceiling, index providers can adjust its inclusion weight or drop it entirely, a mechanism that has previously triggered large institutional repositioning in other Indian names subject to similar limits.
Separately, Swiggy is pursuing Indian Owned and Controlled Company (IOCC) status, a classification relevant to companies operating in sectors with foreign investment restrictions, as it can expand headroom for overseas ownership.
The company's most recent quarterly results, for Q1 FY27, showed a narrowed net loss of Rs 791 crore.
Source: Economic Times Markets
