Swiggy Shares Fall as Instamart Restructures, Rapido Stake Sold for Rs 2,400 Cr; Should You Buy, Hold or Sell?

Swiggy's share price declined on Wednesday following two major developments. The company's board approved the transfer of its quick-commerce arm, Instamart, into a newly formed subsidiary-Swiggy Instamart Private Limited. Additionally, the food delivery giant is finalising a high-value divestment by selling its 11.8% stake in Rapido for Rs 2,400 crore.

Swiggy Rapido Stake Sale: Swiggy Sells its Entire 11.8% stake in Rapido

The Rapido deal is a key development, with Prosus and WestBridge Capital set to acquire Swiggy's stake in the bike taxi platform. This transaction values Rapido at a massive Rs 20,330 crore (approximately $2.3 billion), a significant leap from its previous $1.1 billion valuation in 2024. The sale will provide Swiggy with a capital infusion that may help fuel expansion in its core verticals while trimming its non-core holdings.

Swiggy To Transfer Instamart to Wholly Owned Subsidiary Swiggy Instamart Private Limited

In parallel, Swiggy is restructuring its high-growth quick commerce business. The company has officially transferred Instamart to a newly incorporated subsidiary named Swiggy Instamart Private Limited. The move follows a rebranding in May 2025, where Instamart dropped the "Swiggy" tag to establish a distinct market identity.

Swiggy Share Price Today

Swiggy Ltd's stock was trading at Rs 440.80 as of 12:02 PM on September 24, reflecting a decline of Rs 8.40 or 1.87% for the day. The stock opened at Rs 458.20 and touched an intraday high of Rs 460.90 before slipping to a low of Rs 439.40. Over the past 52 weeks, it has recorded a high of Rs 617.30 and a low of Rs 297.00.

Should You Buy, Hold Or Sell Swiggy Share? Check Expert's View

Swiggy may need to raise over $500 million to sustain its quick-commerce arm, Instamart, amid intensifying competition from rivals Zomato and Blinkit, according to M Financial Analysis. The report highlights growing concerns over Swiggy's financial stability as the quick delivery segment becomes increasingly capital-intensive.

Instamart, once a frontrunner in the space, is reportedly losing significant market share to Blinkit, which has recorded a growth surge of over 130%. Analysts suggest that without a substantial fundraising round, Swiggy may face challenges in maintaining its competitive edge and scaling operations in this rapidly evolving market.

Meanwhile, global brokerage firm Nomura has stated that Swiggy's recent decision to sell its stake in Rapido will bolster the company's cash reserves, providing stronger financial flexibility. Additionally, Nomura believes that the restructuring of Swiggy's quick-commerce arm, Instamart, will help improve contribution margins by enabling a more focused and efficient operational model.

The brokerage has maintained its 'Buy' rating on Swiggy and retained its target price of Rs 550 per share, citing long-term growth potential and strategic execution.

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