Swiggy IPO: Here's what we know about food app's dividend policy from RHP

The food delivery and quick commerce major will use the net issue proceeds for investing in a subsidiary, marketing, and business promotion, along with inorganic growth, debt repayment, and general corporate purposes. As the IPO process is underway, here's a look at Swiggy's dividend policy.

Swiggy IPO: Dividend policy

According to the red herring prospectus (RHP), if there will be any declaration and payment of dividends in the future, the recommendation will be made by the company's Board to the shareholders for their approval.

The Board will have the absolute power to declare an interim dividend in accordance with the provisions of the Articles of Association and Companies Act.

The IPO papers stated that Swiggy's future dividend, if any, will depend upon the company's financial condition, future earnings, cash flows, capital expenditures, working capital requirements, and other factors.

The Instamart operator clearly mentioned that "there is no guarantee that any dividends will be declared or paid in the future".

Swiggy IPO: Has the company paid any dividends since its inception?

Swiggy, in its final IPO papers, said that it had not declared any dividends on the equity shares since its incorporation. The company said it had not declared dividends on shares or compulsory convertible preference shares (CCPS) during the current fiscal and the past three fiscals.

Founded in 2014, Swiggy reported a loss of ₹611 crore in the first quarter of the financial year 2024-25, narrowing from ₹564 crore in the corresponding period last fiscal.