Swiggy closes Rs 10,000 Cr QIP at nearly 4% discount to floor price

Swiggy has closed its Rs 10,000 crore qualified institutional placement on December 12 after raising funds from eligible institutional investors. 

In a filing with the stock exchanges, the company said its Investment and Allotment Committee had approved the issuance and allotment of 26.66 croreequity shares at Rs 375 per share. The issue price represents a 3.97% discount to the floor price of Rs 390.51 and includes a premium of Rs 374 per share. 

Swiggy has also finalised allocations to qualified institutional buyers and adopted the placement document on December 12.

The fundraise follows the shareholder approval received on December 8 when 99.47% of votes cast at the extraordinary general meeting backed the proposal to raise up to Rs 10,000 crore through a QIP. A day later, the company launched the issue and set the floor price at Rs 390.51 per share. 

Swiggy said that the capital would be used to strengthen its balance sheet and support the expansion of Instamart along with investments in logistics and technology infrastructure.

The Bengaluru-based firm shares gained more than 2% on December 9 as the QIP opened for subscription. The issue saw strong traction from institutional investors. Between December 10 and 11, demand exceeded four times the offer size. Large domestic mutual funds including SBI Mutual Fund, ICICI Prudential Mutual Fund, HDFC Mutual Fund and Kotak Mutual Fund reportedly participated in the offering. Global investors such as Temasek, GIC and Nomura also subscribed to the issue.

With the allotment completed, Swiggy has executed one of the largest equity raised by an Indian internet company. Last year, rival Zomato also raised Rs 8,500 crore through a QIP to strengthen its balance sheet and support its food delivery and quick commerce verticals.