According to people in the know, the shareholders’ nod is an enabling provision for the company’s capital raise plans, which could be launched as early as this week.
Typically, companies conducting QIP fundraises price the offering at discounts to market prices. Monday, Swiggy‘s stock ended trading at Rs 385.85 apiece, down 2.1% on the BSE.
Even at the current share price, a Rs 10,000-crore QIP would result in dilution of more than 10% for Swiggy.
This will be Swiggy’s first capital raise since its initial public offering in November 2024, when it raised around Rs 4,500 crore.
Until September quarter, for which Swiggy’s latest financials are available, the company had already burnt through more than 80% of the funds raised during the IPO. This cash burn primarily emanated from losses in its quick commerce unit Instamart.
Addition of Rs 10,000 crore to Swiggy’s war chest is likely to intensify the competition in the 10-minute delivery space as it battles rivals Eternal-owned Blinkit and Nexus Venture Partners-backed Zepto, which is expected to file draft papers for an IPO by December 15.