Swiggy To Invest Rs 1,000 Crore In Logistics Subsidiary To Support Business Expansion
The amount will be invested in one or more tranches, 'by way of subscription to rights issue', Swiggy said in a regulatory filing.
The board of Swiggy Ltd. approved an investment of Rs 1,000 crore in its wholly owned subsidiary— Scootsy Logistics Pvt. to support its business expansion, according to an exchange filing on Friday.
The amount will be invested in one or more tranches, "by way of subscription to rights issue", the filing stated.
The approved funds will be utilised for working capital and other capital expenditures of the company "as part of its business expansion plan", it added.
The indicative time period by when the investment would be made was not provided by the company.
Incorporated on Nov. 27, 2014, Scootsy is involved in the supply chain service and distribution business. The company's turnover in financial year ended March 2024 stood at Rs 5,795.7 crore, higher as compared to Rs 3,686.2 crore in fiscal 2023 and Rs 1,580.3 crore in fiscal 2022.
Meanwhile, Swiggy, the parent entity, witnessed its loss widen to Rs 799 crore in the quarter ended Dec. 31, 2024, as compared to Rs 625.5 crore in the preceding quarter. The revenue, however, increased 10.9% sequentially to Rs 3,993.07 crore.
Shares of Swiggy on Friday closed 3.49% lower at Rs 360.55 apiece on the National Stock Exchange, compared to a 0.51% fall in the benchmark Nifty 50. The stock has declined by 20.9% since its listing in November.
Twelve out of 17 analysts tracking the company have a 'buy' rating on the stock, two recommend 'hold' and three suggest 'sell', according to Bloomberg data. The average of 12-month analysts' price targets implies a potential upside of 47.7%.
