Swiggy shareholders cap foreign ownership at 49.5%

Swiggy shareholders have approved a proposal to cap foreign ownership at 49.5%, a key step for the food delivery and quick commerce firm to qualify as an Indian-owned and controlled company under foreign exchange laws. The resolution, passed at the annual general meeting on July 23, received 99.9996% of votes in favour. The cap applies to total foreign ownership on a fully diluted basis, including foreign portfolio investors, non-resident Indians, and foreign-owned or controlled Indian entities, except the non-repatriation route.

The approval reverses an earlier vote in May when a related proposal on board nomination rights failed to get the required 75% majority. Shareholders also amended Swiggy's Articles of Association, deleting certain board nomination rights for individuals and institutions. Times of India reports that the move could give Swiggy greater flexibility for its quick commerce arm Instamart, potentially allowing an inventory-led model which is restricted for foreign-funded e-commerce companies. Livemint notes the resolution makes Swiggy an Indian-owned company. Swiggy has not indicated any plan to shift Instamart to an inventory-led model.