Why Swiggy shares fell over 5% today: Foreign ownership cap sparks $460 million passive outflow fears

Swiggy shares fell over 5% after the board approved reducing the aggregate foreign ownership limit to 49.5% from 100%, subject to shareholder approval at the August 18 AGM. The cap could make the stock ineligible for MSCI Standard and FTSE indices, triggering estimated passive outflows of about 460 million dollars (around 340 million dollars from MSCI and 120 million dollars from FTSE), or roughly 171 million shares. The move is aimed at qualifying Swiggy as an Indian-owned and controlled company to unlock strategic benefits for its quick commerce unit Instamart, including an inventory-led model.