E-commerce platform, Swiggy opened its Qualified Institutional Placement (issue) worth Rs 10,000 crore. The food delivery platform set the floor price for the issue at Rs 390.51 per equity share, in compliance with the pricing formula prescribed under SEBI ICDR Regulations, it added. Further, the company may approve an additional discount of 5% on the floor price, it added.
Based on the floor price, Swiggy’s market capitalisation would stand at nearly Rs 97,400 crore. The issuance of fresh equity will lead to a 9.3% dilution on a post-money basis, though the figure may vary based on the discount.
Following the announcement of its QIP launch, the shares of the company jumped by nearly 3% in yesterday’s early morning trade.
As per the company’s preliminary-placement-document, Kotak Investment Banking, JP Morgan India, and Citigroup Global Market India will manage the company’s QIP. The company’s QIP issue is only meant for eligible Qualified Institutional Buyers on a private allotment basis and is not available to public or other class of investors, it added.
Utilization of Net proceeds
The company intends to deploy capital worth Rs 4,475 crore towards expansion of its quick commerce platforms including darkstores and warehouses. It added that Rs 2,340 crore would be invested towards its brand marketing and promotion, and Rs 985 crore will be utilised for investment in cloud structure.
Of the total raised capital, some amount would also be used for general corporate purposes which was not disclosed in its preliminary placement document.
The funds will be utilised within three years from the date of listing of its equity shares pursuant to its QIP issue. Further, it must be noted the capital is also subject to an inflation rate of 5%.
Swiggy Q2FY26 Result
For Q2FY26, Swiggy reported a net loss of Rs 1,092 crore. The company’s revenue from operation stood at Rs 5,561 crore, up 54% year-on-year, while EBITDA stood at a loss of Rs 789 crore.