Swiggy shares in focus as board to consider ₹10,000 crore fund raise via QIP

Shares of Swiggy Ltd. will be in focus on Friday, November 7, as the food delivery aggregator's board is scheduled to meet to consider raising ₹10,000 crore through a qualified institutional placement (QIP) or other modes, in one or more tranches.

Following the announcement, brokerage firm Nomura said in a note that the proposed fundraise would help strengthen Swiggy's balance sheet, particularly supporting its quick commerce business.

"The external competitive environment is dynamic, and legacy and new players continue to attract investments in the sector. This has necessitated a conversation with the Board to consider an additional fundraise, which will give us access to sufficient growth capital while enhancing our strategic flexibility," the company said in a filing earlier.

Swiggy reported a net loss of ₹1,092 crore for the September quarter, compared with a loss of ₹626 crore in the same period last year. Revenue rose 54% year-on-year to ₹5,561 crore, from ₹3,601 crore a year earlier.

EBITDA loss widened to ₹798 crore, from ₹554 crore in the corresponding quarter last year.

Swiggy's Food Delivery business reported revenue of ₹1,923 crore, up from ₹1,577 crore a year ago, while Quick Commerce revenue jumped to ₹980 crore, from ₹490 crore year-on-year.

Swiggy's cash on books stood at ₹4,605 crore, compared with ₹5,354 crore in the previous quarter. With the Rapido stake sale worth ₹2,400 crore, total cash is expected to rise to around ₹7,000 crore.

Eternal's cash balance at the end of Q2 stood at ₹18,314 crore.

On Thursday, Swiggy shares ended 1.84% lower at ₹405.75, though they remained above the IPO price of ₹390. The stock is down 25% so far this year.