Swiggy Allots 163 Mn Bonus Shares Worth INR 16,310 Cr To Shareholders

Food Delivery Giant Swiggy Eyes For $800 Mn IPO: Report

SUMMARY

Swiggy has allotted bonus CCPS to equity shareholders in a ratio of 1:14000

Swiggy founders Sriharsha Majety, Lakshmi Nandan, and Rahul Jamini will receive 144.6 Mn bonus shares

Former Indian cricketer Sachin Tendulkar and his wife Anjali Tendulkar will also receive bonus CCPS of 2,11,400 as opposed to their 151 equity shares

Bengaluru-based food delivery aggregator Swiggy has issued around 163 Mn bonus shares to its 30 shareholders.

Board of directors of Swiggy during an extraordinary general meeting held on January 3 have decided to approve the issuance of 16,31,05,600 bonus CCPS in a ratio of 1:1400 to its shareholders. This means, for every one equity share, 1,400 bonus CCPS have been allotted by Swiggy.

The said bonus CCPS can be converted into equity shares either in 1:1 ratio, 1: 1.6 ratio, or 1: 0.8 ratio depending upon the investors and the company.

Swiggy is allotting the bonus shares at a face value of INR 1,000, meaning the total value of bonus shares is pegged at INR 16,310 Cr

As per the regulatory filings, Swiggy’s founders Sriharsha Majety, Lakshmi Nandan and Rahul Jaimini who hold equity shares in the tune of 61,125, 24,087, and 18,182 respectively will receive bonus shares of 85.5 Mn, 33.7 Mn, 25.4 Mn respectively.

While Swiggy’s early backers Elevation Capital and Accel India will get 1.4 Mn bonus shares, Alpha Wave Ventures, Coatue, DST, Norwest Capital to get 3.76 lakh, 14,000, 28,000 and 14,000 bonus shares respectively.

SoftBank, Hadley Harbour, Harmony Partners are also among the 27 investors to receive bonus shares. Former Indian cricketer Sachin Tendulkar and his wife Anjali Tendulkar will also receive bonus CCPS of 2,11,400 as opposed to their 151 equity shares.

The move seems to be in lines with Swiggy going for a public listing before the end of the year. Swiggy is likely to join the likes of edtech giant BYJU’s, Bhavish Aggarwal OLA, and B2B ecommerce startup Udaan who will be trying their luck at the public market.

Last year, Swiggy had announced that it will be investing $700 Mn in its quick commerce business Instamart. Swiggy has been flexing its muscle in the growing quick commerce segment through Instamart, where it is going head-to-head with Zomato’s Grofers and now Reliance-backed Dunzo. Mumbai-based Zepto, a startup founded by two 19-year-old Stanford dropouts have turned heads as it has managed to raise $160 Mn within months of starting operations.

As per a RedSeer report, the quick commerce market in India is expected to reach $5 Bn by 2025 from the current $0.3 Bn.