Hindustan Composites Acquires Stake in Swiggy

3 Sep 2024 , 12:42 PM

Hindustan Composites Ltd’s shares surged over 9% in early trading following the announcement of its stake acquisition in Swiggy Ltd, a major Indian online food delivery platform.

At the time of writing on September 3, 2024 at 12:38 pm, Hindustan Composites’ shares were trading 5% higher at ₹609. The stock has seen a 35% gain over the past six months, outperforming the Nifty 50 index, which rose by 12% during the same period. Hindustan Composites’ stock has gained a total of 29% in the last one year.

On September 2, Hindustan Composites informed stock exchanges about entering a Share Purchase Agreement to acquire 1.50 lakh equity shares of Swiggy at a face value of ₹1 per share, amounting to an investment of ₹5.18 Crore.

This acquisition represents a 0.01% stake in Swiggy on a fully diluted basis and is intended to be part of Hindustan Composites’ investment portfolio, aiming for both short-term and long-term returns.

The acquisition does not qualify as a related party transaction and is expected to be finalized by November 30, with necessary disclosures made in line with SEBI regulations.

Swiggy, founded on December 26, 2013, operates in the food delivery and quick commerce sectors, including online grocery delivery and same-day package deliveries across India. For the financial year ending March 31, 2023, Swiggy reported a turnover of ₹4,653 Crore, a net loss of ₹3,758 Crore, and a net worth of ₹9,810 Crore.