Swiggy had set a floor price of ₹390.51 per share for the placement but also had a provision to offer a discount of not more than 5 per cent on the floor price for the issue.Food and grocery delivery platform Swiggy will issue fresh shares at around ₹375 apiece for its ₹10,000-crore qualified institutional placement (QIP), people with direct knowledge of the exercise told ET.
The issue garnered 4.5-fold subscription from investors, including SBI Mutual Fund, ICICI Prudential, HDFC MF, Kotak MF, GIC, Temasek and Capital Group, one of the persons said, adding around 80-85 per cent of the QIP is being allocated to domestic investors.
The ₹375 pricing for Swiggy’s QIP is a 6 per cent discount to its Wednesday’s closing price of ₹396.50 on the BSE. At this price, the Bengaluru-based company will dilute around 9.6 percent of its stake.
Swiggy did not respond to ET‘s queries.
With the new capital raise, and an expected ₹2,400 crore from its stake sale in Rapido, Swiggy will have close to ₹17,000 crore (around $2 billion) on its books. This will put the Bengaluru-based company alongside rival Eternal in terms of cash in the bank. Eternal, the parent company of Zomato and Blinkit, has over ₹18,000 crore.
Swiggy had said, as a part of its QIP prospectus, that the company plans to deploy ₹4,475 crore from the proceeds, in building its quick commerce fulfilment network.
The fresh fundraising comes at a time when Swiggy’s quick commerce unit Instamart is locked in a battle for market share with 10-minute delivery players including market leader Blinkit, Nexus Venture Partners-backed Zepto and Tata Digital-backed BigBasket, in addition to Flipkart and Amazon. Zepto is soon expected to file its confidential papers for its initial public offering (IPO).
ET had first reported about Swiggy’s QIP plans on October 30. This will be Swiggy’s first capital funding since its IPO in November 2024, when it raised about ₹4,500 crore.
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