Hindustan Composite, an auto ancillary firm, has acquired a minority stake in Swiggy, an online food delivery company preparing for its initial public offering (IPO). This development follows a recent investment by Amitabh Bachchan’s family office in the Bengaluru-based company.
The board of Hindustan Composite has agreed to acquire 1,50,000 equity shares of Swiggy, amounting to an investment of ₹5.17 crore. This transaction was disclosed through a filing with the National Stock Exchange (NSE). The company’s net worth was reported at ₹9,810 crore (approximately $1.18 billion) as of March 2023. Hindustan Composite aims to complete this acquisition by November 30, 2024, with plans to reap both short-term and long-term benefits from the investment.
Swiggy has reportedly filed for an IPO via a confidential route in May. The company plans to raise up to ₹3,750 crore ($450 million) through a fresh issue of equity shares and an offer for sale aggregating up to ₹6,664 crore ($800 million) in its IPO. The company is expected to file draft IPO papers with SEBI shortly.
In preparation for its IPO, Swiggy launched its fifth ESOP (Employee Stock Ownership Plan) liquidity program worth $65 million in July. Over five such events, the company claims to have facilitated over ₹1,000 crore of ESOP liquidity, benefiting 3,200 employees.
Additionally, the Prosus-backed firm strengthened its leadership team last month with the appointment of a new Chief Executive Officer (CEO) and Chief Operating Officer (COO), signaling its readiness for the upcoming IPO.
Financially, Swiggy reported a revenue of ₹5,476 crore in the first three quarters of FY24, with a loss of ₹1,600 crore. The company has yet to file its audited financial results for FY24.
In comparison, Swiggy’s competitor, Zomato, is currently valued at $28.3 billion, according to stock exchange data. The Deepinder Goyal-led company reported ₹4,206 crore in revenue and ₹253 crore in profits for the first quarter of FY24.