ICICI Prudential AMC, SBI MF largest investors in Swiggy’s Rs 10,000 crore fundraise

Three mutual funds emerged as the biggest buyers in Swiggy’s Rs 10,000 crore qualified institutional placement, holding more than a third of the total issuance. ICICI Prudential AMC, SBI Mutual Fund and Aditya Birla Sun Life Mutual Fund together picked up shares worth around Rs 3,700 crore during the QIP, according to allotment details.ICICI Prudential AMC alone was allocated around 16% of the issuance through 12 of its schemes. SBI Mutual Fund accounted for around 15% through eight schemes, while Aditya Birla Sun Life Mutual Fund received nearly 6% through ten schemes. Combined, the three fund houses took more than 37% of the placement, making them the largest investor group in the transaction.

The big participation in mutual funds came as Swiggy completed one of the largest consumer tech capital raises in India. The Bengaluru-based company raised Rs 10,000 crore through the QIP, which opened on December 9 and closed on December 12.The shares were issued at Rs 375 each, a 4% discount to the floor price of Rs 390.5, in accordance with Sebi regulations. The deal ranks as the second-largest QIP ever by a non-banking company in India.

In addition to the three major domestic fund managers, the QIP attracted interest from a broad spectrum of investors. In total, more than 80 institutions participated, with allocations to 61 investors. Swiggy said more than 15 of them were new shareholders, indicating increasing institutional interest even after the company’s initial public offering last year. A total of 21 investment funds participated in the issue, including all the top 10 fund houses in the country.

Insurance companies were also well represented, with eight domestic insurers participating, including ICICI Prudential Life Insurance and HDFC Life Insurance.

On the global side, the QIP attracted sovereign wealth funds, major foreign institutions and asset managers such as Capital Group, Government of Singapore Investment Corporation, BlackRock, Nomura Asset Management, Temasek, Fidelity and Goldman Sachs Asset Management. For Swiggy, the fundraising significantly strengthens its balance sheet at a time when competition in food delivery and high-speed commerce remains fierce. The company said the proceeds will be used to expand and operate its high-speed merchant network, including investments in dark stores and warehouses.

Some of the capital will also go towards technology and cloud infrastructure, brand marketing and promotion, as well as potential inorganic growth opportunities and general corporate purposes.

Management has positioned the QIP as a growth-enhancing move rather than a defensive move. Chief executive Sriharsha Majety said the response from both global and domestic investors reflects confidence in Swiggy’s fundamentals and long-term roadmap.

With mutual funds accounting for such a large part of the issue, the deal also signals growing domestic institutional ownership in India’s listed consumer internet companies, a trend that has strengthened as local savings increasingly flow through mutual funds into the stock markets.