Swiggy shareholders approve IOCC status, cap foreign ownership at 49.5%
Shareholders also approve amendments to the Articles of Association allowing co-founders Sriharsha Majety and Phani Kishan Adepally to retain majority board representation
Swiggy, a prominent food and grocery delivery company, has received shareholder endorsement to limit foreign ownership to 49.5%, a move that will enable it to meet the criteria of an Indian-owned and controlled company (IOCC). This decision follows a previous vote rejection in May.
In accordance with India's foreign investment regulations, an entity can be classified as an IOCC if over 50% of its beneficial ownership is held by domestic parties or individuals, and Indian residents must maintain control, including the right to appoint a majority of directors or make crucial policy decisions.
As of July 6, the total foreign investment in Swiggy amounted to 49.76% on a fully diluted basis, with Indian investors holding 50.24%. Among Swiggy's foreign investors are Prosus, SoftBank, Tencent, and Accel, while its Indian investors comprise SBI Mutual Fund, ICICI Prudential Asset Management, and HDFC Mutual Fund, according to data collected by LSEG.
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- Swiggy shareholders back move for Indian-owned status brecorder.com
