The food and grocery delivery platform, Swiggy’s shares traded lower on Wednesday (December 12), declining 1.42 per cent intra-day. This is primarily attributed to the fact that the lock-in period for anchor investors in the IPO expired on December 11. However, the stock is also in focus today after the company on December 11 announced ‘One BLCK’, an invite-only premium membership offering faster deliveries and on-time guarantees, aimed at enhancing customer loyalty and lifetime value. This however, failed to lift sentiment.
“One BLCK is designed to deliver an elevated Swiggy experience. Members will enjoy faster deliveries on every food order, along with an On-Time Guarantee. When dining out, members can indulge in complimentary cocktails, drinks, or desserts. They will also benefit from access to Swiggy’s top customer care agents for personalized, priority support,” said the company in an exchange filing.
Impact of Lock-In Period Expiry
The recent dip in Swiggy’s stock also coincides with the end of its mandatory lock-in period on December 11, which freed up 6.5 crore shares, accounting for 3 per cent of the company’s total outstanding shares. This has led to speculation that some pre-IPO investors might be booking profits, contributing to the downward pressure.
As per regulations, anchor investors are now allowed to trade up to 50 per cent of their holdings, with the remaining shares becoming eligible for trade after February 9.
Swiggy: 5-day stock performance
Over the last five days, Swiggy’s stock has slipped 5.29 per cent. Despite this, the stock has risen by 25 per cent in less than a month since its listing on November 13.
Swiggy currently holds a market capitalisation of Rs 1.15 lakh crore. The stock’s 52-week high stands at Rs 576.70, while its 52-week low is Rs 391.00.
“Swiggy today announced the launch of One BLCK, an exclusive, invite-only membership that offers a high-quality experience. The new membership appears to be a step up from current Swiggy One membership as it seems to emphasise on quality related aspects such as speed, reliability, and personalised care. Since exclusive, invite-only memberships typically lead to customers feeling more special and valued, we believe the idea behind launching an exclusive programme is to better retain and foster loyalty amongst top quality customers (especially that cohort of customers who might be spending meaningfully more than the rest).
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