Swiggy QIP Oversubscribed 4.5X, Sees Strong Demand From Top Mutual Funds

Swiggy’s INR 10,000 Cr qualified institutional placement (QIP) witnessed strong demand from investors and was oversubscribed 4.5X within an hour of opening, sources told Inc42.

The capital would be raised at about INR 375 per share, a discount of about 4% to floor price of INR 390.51, the sources added. The company said yesterday that it would offer a discount of up to 5% to the floor price.

The QIP saw participation from top mutual funds, including SBI Mutual Fund, ICICI Prudential MF, HDFC MF and Kotak Mahindra MF.

The fundraise comes amid raging competition in the quick commerce segment, where Swiggy’s Instamart competes with market leader Blinkit, Zepto, BigBasket and newest entrants like Flipkart Minutes and Amazon.

The foodtech company plans to deploy INR 4,475 Cr from the fresh fundraise for expanding and running its quick commerce fulfillment network. With the fresh investment, the company intends to expand its fulfillment network area to 6.7 Mn sq ft by the end of 2028 from 5 Mn sq ft at the end of November.

It plans to use INR 2,340 Cr for brand marketing and business promotion and INR 985 Cr to beef up its tech and cloud infrastructure.

The QIP comes almost a year after Swiggy raised INR 4,999 Cr via a fresh issue of shares in its IPO in November 2024.