This proposal will require approval through a special resolution.
"Once approved and implemented, the reduction in the foreign ownership limit is expected to leave no foreign headroom, making Swiggy a likely candidate for deletion from global indices that are subject to foreign ownership constraints," Abhilash Pagaria of Nuvama Alternative & Quantitative Research wrote in his note.How Much Outflows Could Swiggy See?Currently, Swiggy has a 28 basis points weightage in the MSCI Standard Index.
Nuvama Alternative's Pagaria believes that a potential deletion from the index could result in Swiggy seeing passive outflows to the tune of $340 million, equivalent to nearly 125 million shares or six days of the average traded volume.Not just MSCI, Swiggy also has a weightage of 24 basis points on the FTSE index and that could also see passive outflows of nearly $120 million or nearly 46 million shares or two days average volume.This move will also enable Swiggy to operate Quick Commerce on a first party (1P) inventory model, which is currently deployed by both Blinkit and Zepto.
The move is said to be margin accretive, even as it requires higher working capital investment.Shares of Swiggy are looking to recovery from the lows of the day, currently trading 5.4% lower at ₹247.53.
The stock had declined to its record low of ₹235.75 on June 30 this year.
Shares of Swiggy Ltd. , the food delivery and quick commerce operator, fell as much as 7% on Friday, July 24, and are heading towards their all-time low levels, on fears of further outflows from the stock after the recent developments.In an exchange filing on Thursday evening, Swiggy said that the board has approved a proposal to cap foreign ownership at 49.5%, down from the current 100% level.This proposal will now be placed before the shareholders for approval at the upcoming Annual General Meeting (AGM), which has been scheduled for August 18, 2026. This proposal will require approval through a special resolution."Once approved and implemented, the reduction in the foreign ownership limit is expected to leave no foreign headroom, making Swiggy a likely candidate for deletion from global indices that are subject to foreign ownership constraints," Abhilash Pagaria of Nuvama Alternative & Quantitative Research wrote in his note.How Much Outflows Could Swiggy See?Currently, Swiggy has a 28 basis points weightage in the MSCI Standard Index. Nuvama Alternative's Pagaria believes that a potential deletion from the index could result in Swiggy seeing passive outflows to the tune of $340 million, equivalent to nearly 125 million shares or six days of the average traded volume.Not just MSCI, Swiggy also has a weightage of 24 basis points on the FTSE index and that could also see passive outflows of nearly $120 million or nearly 46 million shares or two days average volume.This move will also enable Swiggy to operate Quick Commerce on a first party (1P) inventory model, which is currently deployed by both Blinkit and Zepto. The move is said to be margin accretive, even as it requires higher working capital investment.Shares of Swiggy are looking to recovery from the lows of the day, currently trading 5.4% lower at ₹247.53. The stock had declined to its record low of ₹235.75 on June 30 this year.
