Swiggy share price in focus today after ₹1,000 crore investment in subsidiary Scootsy Logistics

Swiggy share price will be in focus on Monday, 24 February 2025, after the food and grocery delivery major announced a major investment in Scootsy Logistics Pvt Ltd.

Swiggy on Friday said it will invest up to ₹1,000 crore in one or more tranches to expand its wholly-owned subsidiary ‘Scootsy Logistics’ through rights issue.

“... the Board of Directors of the Company at its meeting held Friday, February 21, 2025, have approved investment by the Company in the equity shares of Scootsy Logistics Private Limited, the wholly owned subsidiary of the Company, up to an amount not exceeding ₹1,000 crores in one or more tranches, by way of subscription to rights issue upto ₹1,000 crores towards working capital and other capital expenditures as part of the company's business expansion,” Swiggy said in a regulatory filing on February 21.

The cost of acquisition or the price at which the shares are acquired is ₹7,640 per share, including Premium of ₹7,630 per share or at price determined based on the valuation, it added.

Scootsy is currently engaged in the business of supply chain services and distribution. The services include warehouse management to streamline operations, in warehouse processing that includes value-added services to enhance product delivery, and efficient order fulfillment which enables efficient order picking, packing, and shipping processes for the wholesalers and retailers.

The investment, through cash consideration, is towards working capital and other capital expenditures as part of the company’s business expansion.

The turnover of Scootsy for the financial year ended March 31, 2024, was ₹5,195.7 crore.

Swiggy Stock Price Trend

Swiggy share price has fallen 18% in one month and has dropped 33.5% on a year-to-date (YTD) basis. The new-age tech stock has declined 13.5% in the past three months.

Swiggy shares have slipped below its IPO issue price and listing price. Swiggy shares had made a stock market debut on November 13 at ₹420 on NSE, a premium of 7.7% over the issue price of ₹390.

On Friday, Swiggy shares ended 3.47% lower at ₹360.70 apiece on the BSE.

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