New Delhi. Shares of food and grocery delivery company Swiggy are going to be in special focus in the stock market on Monday. The company has completed the process of raising Rs 10,000 crore through Qualified Institutions Placement i.e. QIP. The company gave information about this big funding through exchange filing on Friday, after which the share saw a rise of about 4 percent and the stock closed at Rs 416.7. The market is now keeping an eye on how investors react to this news on Monday. Strong investor participation and entry of big names has increased confidence about Swiggy’s business model and future growth.
Swiggy had launched the QIP issue on 9 December, which was closed on 12 December. The company allotted shares at the issue price of Rs 375 per share, which was about 4 percent less than the floor price of Rs 395 fixed under SEBI norms. The company made its official announcement on December 13. Investor interest in this QIP was very strong. Overall, more than 80 investors placed bids, while shares were allotted to 61 investors. These include more than 15 new shareholders, who have become investors in the company for the first time after the IPO.
Why will there be an eye on Monday?
Raising a huge amount through QIP and entry of such big investors is being considered a big sign of confidence for Swiggy. Especially in the quick commerce segment where there is tough competition from companies like Blinkit and Zepto, this funding can put Swiggy in a stronger position. For this reason, investors are going to keep a special eye on Swiggy’s shares in the market on Monday to see how much further growth this positive news will bring in the share price.
Which big investors placed bets?
Both domestic and global leading investors participated in this fund raising. 21 mutual funds invested in it, which included the top 10 mutual fund houses of India. These include SBI Mutual Fund, ICICI Prudential Mutual Fund, HDFC Mutual Fund, Nippon India Mutual Fund, Kotak Mutual Fund, Mirae Asset, Axis Mutual Fund and Aditya Birla Sun Life Mutual Fund. Names like.
Apart from this, 8 domestic insurance companies also invested, including big names like ICICI Prudential Life and HDFC Life. At the global level, the presence of big investors like Capital Group, Singapore government fund GIC, BlackRock, Nomura Asset Management, Temasek, Fidelity and Goldman Sachs Asset Management further strengthened this QIP.
Where will the company use this money
Swiggy has made it clear that a major part of the funds raised will be invested in strengthening the quick commerce business. Special focus will be on expanding Instamart’s dark stores and warehouse network. Along with this, investment will be made in technology, cloud infrastructure and platform innovation. The company is also preparing to increase expenditure on brand marketing and promotion, so that it can reach more and more users. Apart from this, this fund will also be used for possible acquisitions and general corporate needs.
What did the CEO say
Swiggy MD and Group CEO Sriharsha Majety said that the strong response from domestic and global institutional investors reflects confidence in the company’s business fundamentals and long-term growth. He said this capital will give Swiggy the freedom to further strengthen its core business, scale Instamart intelligently and invest in innovation.
stock’s movement so far
If we talk about stock performance, Swiggy shares have increased by about 6 percent in the last one month. The stock has given a return of about 15.45 percent in the last 6 months. However, compared to the listing in November 2024, the share is still down by about 3.25 percent.
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