Swiggy Ltd shares surged in trade after Jefferies retained its Buy rating on the food delivery and quick-commerce company, following its move towards Indian-owned and controlled company (IOCC) status. The approval is significant for Swiggy because becoming an IOCC could give the food delivery and quick-commerce company greater flexibility under India's foreign investment rules.
Swiggy shares rose as much as 4.77% to Rs 285.40. The stock is down over 33% in 12 months.
Jefferies has retained its Rs 435 price target on Swiggy, implying 59.9% upside from the stock's previous close. Jefferies expects the company to move towards a first-party, or inventory-led, model, allowing Instamart to directly own and sell inventory alongside its existing marketplace structure.
The brokerage expects the transition to take place over the next two to four quarters, with the groundwork already underway. Jefferies does not expect a major disruption to customer experience or supplier relationships during the migration.
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