Hindustan Composites Reaches Agreement to Acquire Stake in IPO-Bound Swiggy: Report

Hindu Composites, the listed auto ancillary company, has signed a share purchase agreement to acquire a stake in IPO-bound food tech major Swiggy for Rs 5.175 crore. This is as per a report by Inc42.

The listed company said that it would acquire 1.5 lakh shares of the start-up in an all-cash deal, which would translate to a 0.01 per cent stake as per its exchange fillings.

 "We wish to inform you that the company has entered into a share purchase agreement to acquire 1,50,000 equity shares of Re. 1/- each of Swiggy Limited by making an investment of Rs 5.175 Cr," as per its filings reported by Inc42.

The development comes after Amitabh Bachchan's family office reportedly picked up a minority stake in the food tech major from its employees and early backers for an undisclosed amount.

Stockbroking platform Motilal Oswal Financial Services' chairman Raamdeo Agrawal had also bought a stake in Swiggy.

It is reported that the transaction between Hindustan composites and Swiggy is expected to be completed by November 2024.

Hindustan Composites said that the equity shares acquired shall form part of the investment of the company to gain long-term and short-term investment benefits.

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

Swiggy was founded in 2014 by Sriharsha Majety, Nandan Reddy, Phani Kishan Addepalli and Rahul Jaimini. It initially started as a food delivery start-up before venturing into the quick commerce segment with Instamart.

It also offers other services such as Swiggy Genire and Minis stores.

Last week, 360 One, an investor in Swiggy, estimated the company's valuation at $11.5 billion.

Despite being set for its IPO, Swiggy posted a net loss of Rs 4,179.3 crore in the financial year 2022-23, which is up by 15% from Rs 3,628.9 crore in the previous financial year.