Swiggy shareholders back move for Indian-owned status
Food and grocery delivery firm Swiggy said on Tuesday it has received shareholder approval to cap aggregate foreign ownership at 49.5%, paving the way for it to qualify as an Indian-owned and controlled company (IOCC). The approval comes after shareholders rejected a similar proposal in May. Under India’s foreign investment rules, a company can qualify as an IOCC if more than 50% of its…
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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Also reported by 1 other outlet
- Swiggy shareholders approve IOCC status, cap foreign ownership at 49.5% business-standard.com
