Swiggy QIP: Three Mutual Funds Corner Over A Third Of Allocation For Rs 3,700 Crore

ICICI Prudential AMC, SBI Mutual Fund and Aditya Birla Sun Life Mutual Fund together cornered over a third of the allocation in Swiggy Ltd.'s recent share sale via qualified institutional placement.

The food delivery company alloted 16% of the QIP to 12 schemes run by ICICI Prudential, 15% to eight schemes run by SBI Mutual Fund and 6% to 10 schemes run by Aditya Birla Sun Life Mutual Fund, according to a stock exchange filing.

ICICI Prudential invested Rs 1,600 crore in Swiggy's QIP, followed by Rs 1,500 crore by SBI Mutual Fund and Rs 600 crore by Aditya Birla Sun Life.

Swiggy only disclosed the investors who were alloted more than 5% of the equity in the QIP. The company raised Rs 10,000 crore in the four day QIP launched on Dec. 9.

The shares were issued at Rs 375 apiece, which includes a discount of 3.97% of the floor price of Rs 390.51.

Notably, Swiggy's IPO price was Rs 390 in November 2024. The IPO raised Rs 11,327 crore, of which a fresh issue of Rs 4,499 crore went to the company and the rest to selling shareholders. The three mutual funds named above were among the anchor investors ahead of the IPO.

Mutual funds owned 11.89% stake as of September.

Following the QIP, the company's equity share capital has increased.

The fund raise comes amid surging demand and intensifying competition in the sector. Startups are competing with Amazon.com Inc. and Walmart Inc.-backed Flipkart to cover cities with networks of neighborhood warehouses and fleets to quickly deliver everything from groceries and electronics.

JPMorgan in its report last month said that Swiggy has dialled down subsidies over the past three weeks but sharply increased marketing intensity, especially across paid display and paid search.

On the other hand, Macquarie remains constructive on the quick commerce sector growth but expects material, persistent losses, pushing back against the narrative of a sharp improvement in profitability driven by consolidation. It maintains 'underperform' ratings on Zomato-parent Eternal and Swiggy.