IPO-bound Swiggy a 'long term investment' for Modern Insulators in unrelated stake buy

Modern Insulators purchased 1.39 lakh shares, or 0.007% stake in Swiggy at Rs 360 per share, showed the exchange filing.

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Modern Insulators - a listed company in the business of porcelain insulators - has made an investment of Rs 5 crore in unlisted shares of IPO-bound food-delivery platform Swiggy, as per an exchange filing on September 17.

The company has a market capitalisation of Rs 642 crore and is in the business of manufacturing and export of porcelain insulators. This equity in Swiggy has been acquired as a long-term investment, said Modern Insulators.

Modern Insulators purchased 1.39 lakh shares, or 0.007% stake in Swiggy at Rs 360 per share, showed the exchange filing.

The share purchase is expected to be completed in roughly 30-45 days, the company said. Aside of the investment, Modern Insulators' promoters do not have any interest in Swiggy, said the exchange filing.

Swiggy is set to file for its initial public offering as soon as this week, as per reports, adding to a strong pipeline of IPOs in 2024.

Modern Insulators' standalone revenue from operations for FY24 has been Rs 443.29 crore versus Rs 430.96 crore a year ago, and net profit at Rs 36.45 crore as against Rs 28.47 crore in the previous year. The company claims to be the largest exporters of HT Porcelain Insulators from India and achieved an export turnover of Rs 192.30 crore for FY24.