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Swiggy shares plunge after proposal caps foreign ownership at 49.5%

The board approved the 49.5% foreign ownership ceiling for shareholder vote at the Aug. 18, 2026 AGM, with index-linked passive outflows estimated at about $460 million total.

Reported · Written up by our desk · Trade & Tariffs

Swiggy shares fell more than 7% on Friday, July 24, moving toward their all-time low after the company proposed reducing its maximum foreign ownership limit to 49.5% from 100%. The stock hit an intraday low of ₹242.60 on the BSE and was near its all-time low of ₹235.80, touched on June 30, 2026.

In an exchange filing after market hours on Thursday, Swiggy said its board has approved the proposal to be put to shareholders through a special resolution at the company’s Annual General Meeting on August 18, 2026. If approved, foreign investors would collectively be capped at 49.5% ownership, with the ceiling designed to help the company comply with Indian ownership requirements.

The proposed limit would apply across routes and schemes, including investments by Foreign Portfolio Investors and non-resident Indians, while investments made under the non-repatriation route would be excluded. Swiggy also approved amendments to its Articles of Association to qualify as an Indian Owned and Controlled Company under applicable foreign exchange regulations.

Analyst Abhilash Pagaria of Nuvama Alternative & Quantitative Research said the change could leave little to no foreign ownership headroom, raising the risk of deletion from global indices tied to foreign ownership restrictions. He estimated that exclusion from the MSCI Standard Index could drive about $340 million in passive outflows, and exclusion from the FTSE index could add about $120 million, based on Swiggy’s respective index weights.

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