GAGA Share Market News

[hfe_template id='11223'] [ad_1] Swiggy’s stock may face heightened volatility in the near term as the expiry of a major pre-IPO shareholder lock-in period approaches, according to brokerage JM Financial. The lock-in, which ends on May 12, will make around 83% of the company’s shareholding eligible for trade for the first time, raising the potential for large-scale offloading. On Thursday, shares of the food and delivery giant slipped as much as 1.6% to Rs 342.4 on the BSE. JM Financial estimated that even if just 15% of the locked-in shares are sold post expiry, it could result in outflows worth Rs 120 billion — nearly equivalent to the company’s total IPO size of Rs 113 billion. Many pre-IPO investors, including private equity and venture capital firms, are sitting on substantial unrealised gains, and despite Swiggy’s stock trading about 12% below its IPO price of Rs 390, some may be inclined to exit. "While we cannot accurately predict when these shareholders wil...

[hfe_template id='11223'] [ad_1] The board of food and grocery delivery company Eternal has approved a proposal to cap foreign ownership in the firm at 49.5%, it said in a notice to the stock exchanges. The move is aimed at providing “greater operational flexibility” to its quick commerce unit, Blinkit, by allowing it to hold inventory, rather than operate solely as a marketplace, as required under India’s foreign investment rules. As of March 31, Eternal’s domestic ownership stood at 55%, the company said in a regulatory filing. “As a result, the company now qualifies as an Indian-owned-and-controlled company (IOCC) under applicable Indian foreign exchange regulations,” it said. The IOCC status will enable Blinkit to improve its margins, particularly in fragmented or unbranded categories, as well as in the established fast-moving consumer goods segment, where owning inventory allows for better margins, it said. The proposal is subject to shareholders’ approval. In Novem...

[hfe_template id='11223'] [ad_1] Diverging from the much-discussed financial sector, Helios Capital's Dinshaw Irani, in a recent interview with ETNow, expressed an inclination towards the quick-commerce platform companies. While acknowledging the importance of financials, Irani cautioned against aggressive sector rotation, advising investors to remain committed to stocks they are convinced about rather than chasing new themes. "The sector rotation theme is normally where you end up losing the most. It is better to stick to your convincing stocks at this point than try to take newer bets," Irani said. He then went on to state the opportunities within platform companies, particularly in the quick-commerce space. Without explicitly naming companies, Irani hinted at favoring the sector’s largest player, alluding to its strategic resilience and ability to withstand competitive pressures. "We think the reaction of the other platform company to competition wa...