Swiggy Ltd, the leading food delivery and quick commerce platform, has moved forward with its qualified institutional placement (QIP) after receiving board and shareholder approvals, signaling a fresh fundraising push.
In a filing to the exchanges today, the company stated that its Investment & Allotment Committee approved the opening of the qualified institutional placement of equity shares with a face value of ₹1 each today, December 09.
The committee approved a floor price of ₹390.51 per equity share, determined in accordance with SEBI’s ICDR Regulations. Additionally, the company said it cleared the preliminary placement document and the accompanying application form required for the issue.
The company further noted that it has the flexibility to offer a discount of up to 5% on the floor price, subject to regulatory approvals. The final issue price will be decided in consultation with the book-running lead managers.
The company’s fundraising plans come as India’s instant-commerce sector rapidly expands amid surging demand and intensifying competition. Startups are competing with Amazon.com Inc. and Walmart Inc.-backed Flipkart to cover cities with networks of neighborhood warehouses and fleets to quickly deliver everything from groceries to electronics.
Swiggy share price trend
In late November, the shares came under pressure after analysts expressed concerns that the new labor codes could have a financial impact on the company.
The new rules increase the compliance burden on aggregators such as Swiggy, which will now be required to contribute 1–2% of their annual turnover, capped at 5% of the amount paid or payable to gig and platform workers, toward social security benefits.
Swiggy launched a $1.3 billion initial public offering in November last year. The offering, which was one of the few $1 billion-plus listings in India in 2024, was more than three times subscribed.
Its shares have fallen about 26.4% so far this year to ₹ 398 apeice, as a price war drives aggressive discounting. This development mirrors the battle playing out in China, where Meituan, JD.com Inc., and Alibaba Group Holding Ltd. are racing to offer deep discounts.
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