were priced at approximately ₹375 each, reflecting a modest discount to the previous closing price.
The capital infusion is expected to further strengthen the company’s balance sheet and support its continued expansion, particularly in the fast-growing quick commerce segment.
Investor Response to the QIP
Swiggy’s QIP witnessed robust participation, with the issue being subscribed nearly 4.5 times. The overwhelming demand came from a mix of domestic mutual funds and prominent international investors, with Indian institutions reportedly accounting for a significant share of the allocation.
Key participants included:
- SBI Mutual Fund
- ICICI Prudential
- HDFC Mutual Fund
- Kotak Mutual Fund
- GIC
- Temasek
- Capital Group
The response underscores growing investor confidence in Swiggy’s business model, especially in light of the rapid expansion of its quick commerce vertical.
Pricing and Dilution
According to news reports, the QIP was priced at ₹375, which represents a ~6% discount to its previous BSE closing price. While the floor price was marginally higher, the company exercised the permitted option to offer a limited discount to facilitate the placement.
At this valuation, Swiggy is expected to dilute approximately 9.6% of its equity base through the QIP.
Strengthened Balance Sheet
Following this fundraise, and combined with the anticipated proceeds from Swiggy’s partial stake sale in Rapido, the company is expected to hold around ₹17,000 crore in cash reserves.
This positions Swiggy on par with Eternal — the parent company of Zomato and Blinkit — which currently maintains a similar cash balance.
The capital raise comes on the heels of Swiggy’s November 2024 IPO, through which the company secured about ₹4,500 crore. The quick commerce space remains a high-investment, high-competition category, with rival Zepto reportedly preparing confidential filings for an upcoming IPO.
Disclaimer:
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