Exclusive: Swiggy to capitalize reserves worth Rs 16,310 Cr to allot bonus shares

Foodtech major Swiggy is all set to allot bonus preference shares to around three dozen existing investors, according to regulatory filings. This comes at a time when the company is in late-stage talks to raise a new round at over $10 billion valuation.

Swiggy has passed a special resolution to approve the allotment of 16.31 crore bonus preference shares to 33 existing equity shareholders, documents with the Registrar of Companies (RoC) show. The company will capitalize Rs 16,310.56 crore from its reserves to facilitate this bonus allotment.  

The largest beneficiaries of this bonus allotment include founders Sriharsha Majety, Rahul Jaimini and LN Reddy Obul who will receive 8.55 crore, 2.54 crore and 3.37 crore bonus preference shares, respectively.  

Among the other 30 bonus reshares recipients are early investors Accel and Elevation Capital who are expected to receive 14 lakh bonus shares each. Other individual bonus recipients include Kunal Shah, Samina Hamied, Sachin Tendulkar and Anjali Tendulkar.   

The move seems to be the first major step towards Swiggy’s potential public listing. That said, the company hasn’t mentioned anything about its IPO plans.

Meanwhile, apart from core food delivery business, Swiggy has been scaling its grocery delivery vertical Swiggy Instamart at a quick clip. To counter Zepto and Zomato-backed Grofers, the company has committed to invest $700 million in Swiggy Instamart.

The company also has a pick-up and drop service Swiggy Genie and a subscription commerce business with SuprDaily. Swiggy was valued at $5.6 billion in its last fundraise of $1.25 billion in July. In one of the biggest allotments last year, it made Rs 329 crore worth ESOPs and MSOPs allotment to employees and senior executives.