The Swiggy share price has fallen nearly 2% in early trade after the company announced selling its entire Rapido stake for Rs 2,400 crore to Prous and Westbridge Capital. Nomura has maintained its Buy on Swiggy as they believe that this monetisation raises the cash balance and gives it enough financial resources to weather the current burn phase of its Quick commerce.

Nomura has a target price of Rs 550 per share. This implies 24% upside for the Swiggy share price from current levels. The brokerage house believes that, at the current price, the market is ascribing only 0.3x EV/GOV to its quick commerce business Vs 0.9x for Eternal.

Nomura on Swiggy: Monetising Rapido investment

Swiggy had acquired a 12% stake in Rapido for Rs 1,000 crore in April 2022 and company now sold its 12% stak

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