Mumbai, Feb 7 : Following a decline for the fourth consecutive day, shares of online food aggregator Swiggy on Friday slipped below its initial public offering (IPO) issue price of Rs 390.

According to market experts, the company's shares are dropping due to investors' reaction to the company's higher-than-expected losses in the third quarter (Q3 FY25).

After touching a high of Rs 397.65 and a low of Rs 374.8, the stock fell by 2.5 per cent to Rs 379.20 on the BSE during the intra-day trade.

Global financial services company Macquarie has remained the biggest bear on the stock with a target price as low as Rs 325.

Swiggy's stock has now fallen nearly 40 per cent from its all-time high of Rs 617 which was reported on December 23, 2024.

The continuous decline in stock price has also brought Swiggy's total market capitalisation below Rs 90,000 crore, according to latest BSE data.

The company's shares were listed on November 13, 2024, at an issue price of Rs 390 apiece as a part of Rs 11,327.43 crore fundraising through the primary market.

On its debut, the stock was listed at Rs 420 with an 8 per cent gain from the issue price. However, since then, it has fallen 10 per cent below its listing price.

Meanwhile, Swiggy reported a net loss of Rs 799 crore for the quarter ended December 31 (Q3 FY25), a 39 per cent increase from its Rs 574 crore loss in the same period last year (Q3 FY24.

Despite the widening losses, the company's revenue from operations rose by 31 per cent year-on-year (YoY) to Rs 3,993 crore in Q3 as compared to Rs 3,049 crore in year-ago period.

"The secular expansion in food delivery margins and cash flow generation is balanced by growth investments being made in Quick-commerce including dark stores expansion and marketing, amidst high competitive intensity in the near-term," Sriharsha Majety, MD and Group CEO, Swiggy said in filing.

/IANS