Ahead of $1.25-bn IPO, lesser-known company's Swiggy share buy gets D-Street's attention
Modern Insulators, a lesser-known firm, has invested in Swiggy by acquiring 1.38 lakh shares at ₹360 per share, valuing the food delivery giant at ₹85,320 crore. This comes as Swiggy prepares for its $1.25 billion IPO. Major investors like Prosus ...
By Rajesh Mascarenhas, ET Bureau | Updated:
BCCL - Non Copyright
A lesser-known listed firm with a market value of ₹703 crore caught the attention of market participants on Wednesday after it announced an investment in the IPO-bound food and grocery delivery giant Swiggy.
In a stock exchange filing, Modern Insulators disclosed it had acquired 1.38 lakh shares of Swiggy at ₹360 per share. Although the investment is relatively small compared to the recent private market deals, it values Swiggy at ₹85,320 crore, or $10.2 billion. The market capitalisation of its larger rival Zomato on Wednesday stood at ₹2.43 lakh crore ($29 billion).
In June, US-based asset manager Baron Capital, in regulatory filings with the US Securities and Exchange Commission (SEC), marked up the fair value assessment of its stake in Swiggy by 25%, boosting the company's valuation to $15.1 billion.
Baron Capital had participated in Swiggy's $700 million funding round in January 2022, when the firm was valued at $10.7 billion.
Modern Insulators said in its filing that the Swiggy deal is a long-term investment, while the promoters have no interest in the food delivery platform as of now.
Swiggy did not respond to ET's queries on the transaction.
Softbank-backed Swiggy has filed a draft paper 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 such as Prosus, Swiggy's largest shareholder with a 33% stake, and SoftBank are expected to offload part of their holdings in the OFS.
In a stock exchange filing, Modern Insulators disclosed it had acquired 1.38 lakh shares of Swiggy at ₹360 per share. Although the investment is relatively small compared to the recent private market deals, it values Swiggy at ₹85,320 crore, or $10.2 billion. The market capitalisation of its larger rival Zomato on Wednesday stood at ₹2.43 lakh crore ($29 billion).
In June, US-based asset manager Baron Capital, in regulatory filings with the US Securities and Exchange Commission (SEC), marked up the fair value assessment of its stake in Swiggy by 25%, boosting the company's valuation to $15.1 billion.
Baron Capital had participated in Swiggy's $700 million funding round in January 2022, when the firm was valued at $10.7 billion.
Modern Insulators said in its filing that the Swiggy deal is a long-term investment, while the promoters have no interest in the food delivery platform as of now.
Swiggy did not respond to ET's queries on the transaction.
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Softbank-backed Swiggy has filed a draft paper 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 such as Prosus, Swiggy's largest shareholder with a 33% stake, and SoftBank are expected to offload part of their holdings in the OFS.
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