Hindustan Composites to pick up stake in IPO-bound Swiggy

Hindustan Composites on Monday said that it has entered into a share purchase agreement with IPO-bound food delivery platform Swiggy.

According to the BSE filing, the friction material manufacturer has agreed to acquire 1,50,000 equity shares in Swiggy for Re 1 each by making an investment of Rs 5.175 crore.

The investment comes days after Amitabh Bachchan’s family office picked up a small stake in the company, according to a report by The Economic Times.

Motilal Oswal Financial Services chairman Raamdeo Agrawal has also acquired a small stake in the IPO-bound food tech giant, according to the report.

YourStory had previously reported that the SoftBank-backed platform will most likely file its draft red herring prospectus (DRHP) with markets regulatory by as early as the first week of September.

The quick commerce and food delivery platform aims to raise Rs 10,400 crore through its initial public offering, making it the only venture capital-backed startup to exceed Rs 10,000 crore in a public listing after Paytm.

Swiggy, in April, had confidentially filed documents for a Rs 10,400 crore IPO with Securities and Exchange Board of India (SEBI).

The company competes with the likes of Zomato in the food delivery segment and Zomato-owned Blinkit and Zepto, which raised an additional $340 million at a $5 billion valuation, in the quick commerce space.