The council meeting of 23 September approved the sale of 10 shares and 163,990 preferred shares in Rapido to MIH Investments One BV (£ 1,968 crore) and 35,958 preference shares to Westbridge (£ 431.5 crore) | Photocredit: Reuters/Francis Mascarenhas
Swiggy shares fell 1.78 percent to £ 441.20 on Wednesday afternoon trade, despite the company that announced a significant assets income and industrial restructuring movements worth more than £ 2,400 crore. The share was open higher at £ 458.20, but dropped during the heavy sales pressure during the session, because the sales quantities outweigh the purchase quantities four times.
Analysts remain divided over the implications of Monday’s decisions. Morgan Stanley maintained an overweight rating with a target of £ 450, in which the £ 1,968 crore Rapido Stake Sale was viewed as a balance reinforcement that matches the management strategy. Nomura expressed a greater optimism with a buy -rating and £ 550 target, in the conviction that the Instamart restructuring positions positions the Quick Commerce unit for inventory possession as soon as Swiggy reaches the majority of domestic shareholders.
Macquarie, however, broke a cautious note with an underperform rating and £ 285 goal. While Rapido sales increases the net cash to more than $ 850 million, the brokerage warned that the Instamart waste sale indicates possible external financing needs, which estimates the annual EBITDA losses of $ 400-450 million.
The board meeting of 23 September approved the sale of 10 shares and 163,990 preferred shares in Rapido to MIH Investments One BV (£ 1,968 crore) and 35,958 preference shares to Westbridge (£ 431.5 crore). The MIH transaction comprises a connected party as a Prosus group entity MIH India Food Holdings owns 23.31 percent in Swiggy and has two nominated drivers on the board.
The Instamart transfer includes the relocation of the rapid trade, which has contributed 24.21 percent of the independent income in FY25, to Step-Down Subsidiary Swiggy Instamart Private Limited. Sales sales, subject to approval of the shareholders, is expected after Q3 FY26 and will be based on book value of assets. Both transactions require approval from the competition committee.
Published on September 24, 2025
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