MSCI and FTSE to Reduce Swiggy Weighting Following Foreign Ownership Limit Cut
· Business · Economic Times
Global index providers MSCI and FTSE are set to adjust Swiggy's index treatment after the company reduced its foreign ownership limit from 100% to 49.5%. MSCI plans to remove the food delivery firm from its global indices effective September 7, while FTSE will modify its investability weight on the same date. These changes are projected to trigger passive outflows exceeding $350 million, with Nuvama Alternative and Quantitative Research estimating the MSCI deletion alone could account for $330 million. The move follows Swiggy's recent decision to cap foreign ownership to qualify as an Indian-owned and controlled company. Swiggy shares declined 2.7% to ₹267.50 on the Bombay Stock Exchange following the announcement.
Why it matters
The index adjustments will trigger significant passive selling of Swiggy shares by global funds, potentially impacting the stock's short-term price stability. The move marks a shift in the company's investor base as it aligns with domestic ownership regulations.
Read the original report — Economic Times
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