Bollywood star Madhuri Dixit has ventured into the financial world, making headlines with her recent investment in the food deliveryt giant - Swiggy. According to a Moneycontrol report, Dixit, along with Ritesh Malik, founder of Innov8, purchased shares in the food delivery giant through secondary market transactions.
As per Moneycontrol report, both invested Rs 1.5 crore each, becoming equal shareholders in Swiggy, which is gearing up for its IPO later this year.
Understanding Secondary Market Transactions
For those unfamiliar with the term, in simple terms, a secondary market transaction involves the sale of shares between investors, bypassing the company’s direct involvement.
According to Moneycontrol report, Swiggy’s investment banker, Avendus, facilitated this transaction. Madhuri Dixit reportedly paid Rs 345 per share, securing her stake ahead of the company's much-anticipated IPO.
Swiggy’s IPO: A USD 1.4 Billion Goal
The food delivery giant is preparing to launch a USD 1.4 billion public issue, with plans to list on the stock exchanges by the end of 2024.
According to Moneycontrol, the Bengaluru-based company has been valued at around USD 9 to 9.3 billion in secondary market transactions.
Although Madhuri Dixit is not the first Bollywood star to invest in Swiggy.
The shares of the company have surged by 120 per cent YTD, since its listing in 2021 | Image: Wikipedia (Representative)
Earlier in August, Big B Amitabh Bachchan also bought shares in the company. As per the report, many investors are eager to get a slice of Swiggy, drawn by its potential to replicate Zomato’s success.
Apart from this the shares of the company have surged by 120 per cent YTD, since its listing in 2021.
The Battle of the Food Delivery Giants
The food delivery market in India is largely dominated by two players - Swiggy and Zomato. Together, they control nearly 90 to 95 per cent of the industry.
The main rival of Swiggy, Zomato, currently holds a market value of over USD 29 billion.
