India, July 24 -- Shares of Swiggy tanked as much as 7.8% to Rs.242.60 during the intraday trading on the BSE, a day after the company's board approved a proposal to cap its aggregate foreign ownership at 49.5% as part of its renewed push to become an Indian-owned and controlled company (IOCC).

The stock pared some losses later and was trading 5.29% lower at Rs.247.75 at 11:55 IST, valuing the company at Rs.68,303 Cr (about $7.1 Bn). The decline in the stock came amid investor concerns that the proposed foreign ownership cap could trigger selling by some foreign shareholders.

Following the board's approval, Swiggy will now seek shareholder approval for the proposal. The move is aimed at helping the company qualify as an IOCC under the F...