Swiggy share price will remain in focus on Monday after the company announced that it has completed Qualified Institutions Placement (QIP) of equity shares, raising ₹10,000 crore.
The shares of food delivery company was up nearly 4% on Friday, closed at ₹416.7. Swiggy stock has rallied over 6% in a month and 15.45% in last six months. However, Swiggy share price has fallen 3.25% since its listing in November 2024.
Swiggy QIP details
In an exchange filing on December 13, Swiggy informed the exchanges that the QIP saw a strong and diversified participation from marquee global and domestic institutional investors.
The issue was participation from 21 mutual funds, including each of the top 10 MFs in the country viz. SBI MF, ICICI Prudential MF, HDFC MF, Nippon India MF, Kotak MF, Mirae MF, Axis MF and Birla MF among others.
The QIP also saw interest from more than 80 investors with allocations to 61 investors – out of which over 15 are new shareholders. The issue witnessed interest from 8 domestic insurance companies including ICICI Prudential Life Insurance and HDFC Life Insurance, among others and key global investors showed interest, including Capital Group, Government of Singapore (GIC), BlackRock, Nomura Asset Management, Temasek, Fidelity and Goldman Sachs Asset Management among others, according to the exchange filing.
The issue was launched on December 9 and closed on December 12, with a price of ₹375 per share, which is 4% discount to the floor price of ₹395 per share, according to Sebi regulations.
The company informed that the proceeds from the QIP will be utilised for – Investment in the expansion and operations of the quick commerce fulfilment network, including dark stores and warehouses, investment in technology and cloud infrastructure, brand marketing and business promotion expenses to enhance the brand awareness and visibility of the platform, across the segments, funding inorganic growth through unidentified acquisitions and general corporate purposes.
“The strong response to our QIP from both global and domestic institutional investors, including new investors since our IPO last year, reflects deep confidence in Swiggy’s business fundamentals, disciplined execution, and long-term value creation roadmap. The additional capital provides us the flexibility to strengthen our core businesses, scale Instamart while maintaining financial prudence, and invest in innovation to continue to deliver unparalleled convenience,” said Sriharsha Majety, MD & Group CEO at Swiggy.
Kotak Mahindra Capital Company Limited, J.P. Morgan India Private Limited and Citigroup Global Markets India Private Limited acted as Book Running Lead Managers to the QIP. Cyril Amarchand Mangaldas was the Legal Counsel to the Company while AZB & Partners and Latham & Watkins were the Legal Counsels to the Book Running Lead Managers.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
