Ahead of $1.25 billion IPO, lesser-known company’s purchase of Swiggy shares grabs D-Street attention

A lesser-known listed company with a market value of ₹703 crore caught the attention of market participants on Wednesday after announcing an investment in the food and grocery delivery giant that is preparing to go public. Antics.

In a presentation to the Stock Exchange, Modern insulators disclosed that it had acquired 1.38 lakh shares of Swiggy at ₹360 per share. While the investment is relatively small compared to recent private market transactions, it values ​​Swiggy at ₹85,320 crore, or $10.2 billion. market capitalization From his biggest rival Zomato on Wednesday stood at ₹2.43 lakh crore ($29 billion).

In June, the US-based asset manager Baron CapitalIn regulatory filings with the US Securities and Exchange Commission (SEC), the company increased the fair value assessment of its stake in Swiggy by 25%, raising the company’s valuation to $15.1 billion.

Baron Capital had participated in Swiggy’s $700 million funding round in January 2022, when the company was valued at $10.7 billion.

Modern Insulators said in its filing that the deal with Swiggy is a long-term investment, while the promoters have no interest in the Food delivery platform from now on.


Swiggy did not respond to ET’s queries on the transaction. Softbank-backed Swiggy has filed a draft for a $1.25 billion IPO with Sebi through the confidential filing route. The IPO is expected to raise ₹3,750 crore ($450 million) in fresh capital, with an additional offer for sale (OFS) component of up to ₹6,664 crore ($800 million).

Major investors like Prosus, Swiggy’s largest shareholder with a 33% stake, and Soft bank They are expected to divest part of their stakes in the OFS.

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