Shares of Swiggy ltd are under pressure on Wednesday after Swiggy shareholders approved a proposal to cap aggregate foreign ownership at 49.5%. The approval is significant for Swiggy because becoming an Indian-owned and controlled company, or IOCC, could give the food delivery and quick-commerce company greater flexibility under India's foreign investment rules.
The resolution secured 99.98% of votes in favour, a sharp turnaround from May, when a similar proposal received 72.36% votes and was rejected.
Swiggy shares fell over 1% to Rs 270.95 apiece.
The biggest operational implication could come from the rules governing e-commerce businesses with foreign investment. Swiggy operates across food delivery and quick commerce, where restrictions can apply to platforms that hold inventory.
An IOCC structure could give Swiggy more flexibility to own inventory itself, which could change how it manages its supply chain. Greater control over inventory could allow the company to exercise more control over product quality and pricing while improving procurement economics.
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