Swiggy shareholders back move for Indian-owned status (updated)
UPDATE 2-Swiggy shareholders back move for Indian-owned status Adds background in paragraph 3
Aug 18 (Reuters) - Food and grocery delivery firm Swiggy SWIG.NS 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.
Being an IOCC would help Swiggy's quick commerce arm Instamart move to an inventory-ownership from a marketplace model, providing strategic and operational advantages, the company had said in its annual report last month.
Under India's foreign investment rules, a company can qualify as an IOCC if more than 50% of its beneficial ownership is held by domestic entities or individuals. Resident Indians must also retain control, including the right to appoint a majority of directors or to make key policy decisions.
As of July 6, aggregate foreign investment in Swiggy stood at 49.76% on a fully diluted basis, while domestic investors owned 50.24%.
Swiggy's foreign investors include Prosus, SoftBank, Tencent and Accel, while its Indian investors include SBI Mutual Fund, ICICI Prudential Asset Management and HDFC Mutual Fund, according to data compiled by LSEG.
(Reporting by Abinaya V in Bengaluru and Praveen Paramasivam in Chennai; Editing by Joyjeet Das)
((Praveen.Paramasivam@thomsonreuters.com; +91 867-525-3569;))
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