Hindustan Composites to Acquire 0.01% Stake in Swiggy for ₹5.175 Crore

Hindustan Composites Limited has announced a strategic acquisition involving Swiggy Limited. The company has entered into a Share Purchase Agreement to acquire 1,50,000 equity shares of Swiggy Limited, each valued at ₹1, for a total investment of ₹5.175 crore. This acquisition represents a stake of 0.01% on a fully diluted basis.

IPO-bound, Swiggy Limited, an established player in the food delivery and quick commerce sectors, reported a turnover of ₹4,653.3 crore for the financial year ending March 31, 2023. Despite its significant turnover, Swiggy posted a net loss of ₹3,757.6 crore. The company’s net worth stands at ₹9,810 crore. Founded on December 26, 2013, Swiggy operates extensively across India, offering a platform for food ordering and delivery, as well as online grocery and same-day package delivery services. Notably, Swiggy is gearing up for its IPO, preparing to list on the Indian stock exchanges.

The acquisition aligns with Hindustan Composites’ strategic investment goals, aiming to tap into the growing food delivery and quick commerce market in India. The indicative time frame for completing this acquisition is on or before November 30, 2024.

This move is part of Hindustan Composites’ broader strategy to diversify its investments and gain exposure to emerging sectors with substantial growth potential. By acquiring a stake in Swiggy, especially when the Swiggy IPO is around the corner, Hindustan Composites positions itself within the rapidly expanding digital and consumer services landscape, This can potentially benefit them from Swiggy’s market presence and future growth opportunities.

In Q1 FY 2025, Hindustan Composites Limited reported a total income of ₹7,720 lakh, up from ₹7,576 lakh in Q1 FY 2024. The company’s net profit for the quarter ended June 2024 was ₹867 lakh, declined from ₹1,004 lakh in Q1 FY 2023.

About Hindustan Composites Limited

Hindustan Composites Ltd manufactures and markets fibre-based friction material and is in the treasury business.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.