Restaurant India News: Swiggy Prices QIP at Rs 375, Dilutes 9.6 Percent Equity to Fuel Growth

Swiggy has moved forward with a major qualified institutional placement, pricing its new shares at around Rs 375 each. The offer drew strong interest from both domestic and international institutions, resulting in subscription levels well above the size of the issue. The funds from the placement are expected to support Swiggy’s expansion strategy, with a key focus on strengthening its quick commerce operations.

The company’s Rs 10,000 crore QIP received demand of nearly 4.5 times the shares offered. Participation came from Indian mutual funds as well as global investors, with reports indicating that a large share of the allocation went to India-based institutions. Key investors included SBI Mutual Fund, ICICI Prudential, HDFC Mutual Fund, Kotak Mutual Fund, GIC, Temasek and Capital Group.

Reports show that the issue price of roughly Rs 375 reflects a discount of about 6 percent to the previous closing price on the BSE. At this valuation, Swiggy will dilute close to 9.6 percent of its equity. While the floor price had been set marginally higher, the company exercised its option to offer a small discount for the placement.

Following the fundraise, and with additional proceeds expected from its partial stake sale in Rapido, Swiggy is positioned to hold close to Rs 17,000 crore in cash. This places it in line with Eternal, the parent company of Zomato and Blinkit, which maintains a similar cash position.

The latest capital raise comes on the heels of Swiggy’s IPO in November 2024, through which the company secured around Rs 4,500 crore. The quick commerce segment continues to attract significant investor interest and competitive movement, with Zepto reportedly preparing confidential filings for an upcoming IPO.