SBI Mutual Fund has raised its stake in Swiggy, a leader in food delivery and quick commerce, to surpass 5% after purchasing an additional 1.18 crore shares on September 29. This acquisition is valued at around Rs 300 crore, based on Swiggy’s closing stock price of Rs 253.70 on the same date. However, the actual acquisition price remains undisclosed in the filing.
According to a regulatory filing, SBI Mutual Fund acquired 1,18,38,465 shares, which amounts to a 0.4289% stake in Swiggy through its various schemes. Prior to this transaction, SBI Mutual Fund held 12.97 crore shares, which represented a 4.70% stake in the company. After this purchase, the holding increased to 14.15 crore shares, or 5.12%.
This transaction pushed SBI Mutual Fund’s holding above the 5% threshold, necessitating a disclosure in accordance with Regulation 29(1) of SEBI’s Substantial Acquisition of Shares and Takeovers Regulations. SBI Funds Management provided this disclosure to Swiggy and both the National Stock Exchange (NSE) and BSE on September 30.
The increase in stake follows the approval from Swiggy shareholders for a 49.5% limit on aggregate foreign ownership during its Annual General Meeting (AGM) in August, overcoming a significant hurdle towards becoming an Indian-owned and controlled company (IOCC). By July, Swiggy’s domestic ownership had surpassed 50%, while foreign ownership was recorded at 49.76%.
In its Q1 FY27 report, Swiggy experienced a 7% year-on-year increase in operating revenue, amounting to Rs 6,812 crore, compared to Rs 4,961 crore in Q1 FY25. Additionally, the company managed to narrow its losses by 34%, bringing them down to Rs 791 crore during this period.
As of 10:40 AM on Thursday, Swiggy’s shares were trading around Rs 247, resulting in a market capitalisation of Rs 68,125 crore (approximately $7.17 billion).