Swiggy Shares Surge After Raising ₹10,000 Crore in QIP, Focus on Expansion and Innovation

Swiggy Share Price to Remain in Focus on Monday

Food delivery company Swiggy's share price is expected to be in focus on Monday after the company announced that it has completed a Qualified Institutions Placement (QIP) of equity shares, raising ₹10,000 crore.

Swiggy Stock Performance

The shares of Swiggy were up nearly 4% on Friday, closing at ₹416.7. The stock has rallied over 6% in a month and 15.45% in the last six months. However, the share price has fallen 3.25% since its listing in November 2024.

QIP Details

According to an exchange filing on December 13, the QIP saw strong and diversified participation from marquee global and domestic institutional investors, including 21 mutual funds and 8 domestic insurance companies.

• The issue was participated by key global investors, including Capital Group, Government of Singapore (GIC), BlackRock, Nomura Asset Management, Temasek, Fidelity, and Goldman Sachs Asset Management.
• The QIP also saw interest from over 80 investors, with allocations to 61 investors, including more than 15 new shareholders.

Utilization of QIP Proceeds

The company will utilize the proceeds from the QIP for:

• Investment in the expansion and operations of the quick commerce fulfillment network, including dark stores and warehouses.
• Investment in technology and cloud infrastructure.
• Brand marketing and business promotion expenses to enhance brand awareness and visibility of the platform.
• Funding inorganic growth through unidentified acquisitions and general corporate purposes.

CEO's Statement

The strong response to our QIP from both global and domestic institutional investors reflects deep confidence in Swiggy's business fundamentals, disciplined execution, and long-term value creation roadmap. The additional capital provides us with 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.

The QIP was launched on December 9 and closed on December 12, with a price of ₹375 per share, which is a 4% discount to the floor price of ₹395 per share, according to Sebi regulations.

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.

Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.