Hindustan Composites invests Rs 5.17 crore in Zomato rival Swiggy ahead of IPO

Hindustan Composites, a listed auto ancillary company, has acquired a minority stake in Swiggy, a food delivery company that competes with Deepinder Goyal-led Zomato. 

In an exchange filing, the company said it signed a share purchase agreement to buy 1,50,000 equity shares of Swiggy for Rs 5.175 crore.

"Pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”), we wish to inform you that the Company has entered into a Share Purchase Agreement with Swiggy Limited to acquire its 1,50,000 (One Lakh Fifty Thousand) Equity Shares of Re. 1/- (Rupee One only) each by making an investment of Rs. 5.175 Crore," the company said.

The transaction is expected to be completed by November 30th, 2024.

Amitabh Bachchan’s family office investment in Swiggy

The development comes a week after Amitabh Bachchan’s family office and Motilal Oswal Financial Services chairman Raamdeo Agrawal reportedly made a similar move by investing an undisclosed amount for a minority stake in the food delivery major, which also operates a quick commerce platform, Swiggy Instamart.

Strategic investment ahead of Swiggy’s IPO

The acquisition by Hindustan Composites is part of a broader investment strategy to secure both short-term and long-term benefits.

Earlier this year, Swiggy had confidentially filed documents for a Rs 10,400 crore IPO with the Securities and Exchange Board of India (SEBI). The IPO is expected to raise Rs 3,750 crore through a fresh issue of equity shares and an offer for sale amounting to Rs 6,664 crore.

According to the filing, Swiggy's net worth stood at Rs 9,810 crore at the end of the March 2023 fiscal year.