Swiggy Secures Rs 10,000 Crore through Qualified Institutional Placement

Swiggy has successfully completed its Rs 10,000 crore qualified institutional placement on December 12, attracting funds from qualified institutional investors. According to a statement released to the stock exchanges, the company’s Investment and Allotment Committee has approved the issuance of 26.66 crore equity shares priced at Rs 375 per share. This issue price reflects a 3.97% discount to the established floor price of Rs 390.51 and incorporates a premium of Rs 374 per share.

Details of the Fundraise

On December 12, Swiggy finalised its allocations to qualified institutional buyers and formally adopted the placement documentation. This fundraising initiative followed the green light received from shareholders on December 8, with 99.47% of votes cast in favour of the plan to raise up to Rs 10,000 crore through a QIP.

Capital Utilisation Plans

The funds raised will be strategically employed to enhance Swiggy’s balance sheet, bolster the expansion of Instamart, and invest in logistics and technological infrastructure.

Market Response and Investor Participation

Shares of the Bengaluru-based company surged by over 2% on December 9, coinciding with the opening of the QIP for subscription, showcasing strong interest from institutional investors. From December 10 to 11, demand soared, eclipsing the offer size by more than four times.

Key Participants

Major domestic mutual funds, including SBI Mutual Fund, ICICI Prudential Mutual Fund, HDFC Mutual Fund, and Kotak Mutual Fund, were reported to have participated in the offering. Global investors such as Temasek, GIC, and Nomura also showed considerable interest in the issue.

Significance of the Allotment

With this allotment, Swiggy has successfully executed one of the largest equity fundraising efforts by an Indian internet company. Last year, competitor Zomato raised Rs 8,500 crore through a QIP to strengthen its balance sheet, focusing on its food delivery and quick commerce segments.