Swiggy shares fall over 3% after firm announces ₹1,000 crore investment in Scootsy Logistics; pare losses later

Shares of the company slipped as much as 3.38% to ₹348.35 apiece on the NSE in the early trade on Monday, February 24. However, the stock trimmed losses and, last seen, was trading at ₹358.50, down 0.57%.

In a regulatory filing, Swiggy informed bourses about the "investment by the company in the equity shares of Scootsy Logistics Private Limited, the wholly owned subsidiary of the company ("Scootsy"), up to an amount not exceeding ₹1,000 crore in one or more tranches, by way of subscription to rights issue up to ₹1,000 crore."

The investment is towards working capital and other capital expenditures as part of the company's business expansion.

Scootsy is currently engaged in the business of supply chain services and distribution.

Swiggy Q3 FY25 Results

Total expenses surged to ₹4,898.27 crore from ₹3,700 crore in October-December FY24. Revenue from operations increased to ₹3,993.06 crore from ₹3,048.69 crore.

Its basic and diluted EPS stood at -₹3.48 against -₹2.61 in the year-ago period.

Further, Swiggy's overall gross order value (GOV) grew 38% year-on-year (YoY) to ₹12,165 crore, while the consolidated adjusted EBITDA loss reduced by nearly 2% YoY to ₹490 crore but rose ₹149 crore QoQ. The platform’s Average Monthly Transacting Users (MTU) increased 25.3% YoY to reach 17.8 million, with nearly a third of all users utilising more than one service on the platform.

The company's food delivery business GOV grew 19.2% YoY to ₹7,436 crore. Adjusted EBITDA grew 63.7% QoQ to ₹184 crore, delivering a 2.5% margin, up from 0.3% a year ago.

Swiggy listing and IPO

On November 13, 2024, shares of food delivery and quick-commerce major Swiggy listed with a premium of nearly 8% against the issue price of ₹390.

The stock listed at ₹412, reflecting a jump of 5.64% from the issue price on the BSE. Later, it surged 7.67% to ₹419.95.

On the NSE, shares of the firm made their market debut at ₹420, a jump of 7.69%.

The ₹11,327 crore initial public offer of Swiggy was overall subscribed 3.59 times.

The initial share sale had a price range of ₹371-₹390 a share.

The company's IPO had a fresh issue of shares worth ₹4,499 crore, along with an offer-for-sale (OFS) of ₹6,828 crore.

The company's IPO ran between November 6, 2024, and November 8, 2024.