Swiggy Ltd.'s shares dropped significantly over 4% during early trading on Monday, reacting to a substantial board shakeup. The sell-off followed the announcement of co-founder Nandan Reddy stepping down from the company's board effective April 10. This transition marks a key founding-level shift for the quick commerce and food delivery platform.
The immediate volatility was amplified by the resignation of Lakshmi Nandan Reddy Obul, who served as whole time director and head of innovation, also citing personal professional interests. Group CEO Sriharsha Majety acknowledged Reddy's deep contributions, describing him as a "vital collaborator and a visionary force" integral to Swiggy's evolution.
Swiggy Reports Major Board Shakeup Following Key Departures
The company disclosed the significant changes to its board after market hours on Friday. While two key founders exited, the board swiftly moved to appoint new leadership.The board appointed co-founder Phani Kishan and Group CFO Rahul Bothra as executive directors, effective June 1, 2026. To strengthen its external governance, Renan De Castro Alves Pinto, who joins from Prosus Ventures, was roped in as a nominee director.
Stock Plunge Details: Swiggy Trades Down Amid Uncertainty
The market sentiment reflected the governance shift, seeing shares fall by as much as 4.4% on the NSE, settling at Rs 262.85. This decline significantly outpaced the broader market, where the Nifty 50 recorded a 1.7% dip.Trading activity showed high investor interest, with the total traded volume standing at 1.3 times the 30-day average. Looking at recent performance, the stock is currently down 20% in the last 12 months and has fallen 31% year-to-date.
Despite the dip, expert consensus remains largely positive. According to Bloomberg data, 23 out of the 28 analysts tracking Swiggy maintain a 'buy' rating, while only a few suggest a 'hold' or 'sell'. The average 12-month price target set by analysts remains robust at Rs 419, suggesting a potential upside of 58%.
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