Auto parts-making firm Hindustan Composites has acquired a stake in one of India’s top online food ordering and delivery companies, Swiggy.

What Happened: Hindustan Composites has bought 1.5 lakh equity shares of Swiggy, the company said in an exchange filing on Monday.

The shares acquired will be part of Hindustan Composites’ investment portfolio, aimed at reaping long-term or short-term investment benefits. The acquisition, worth about ₹5.2 crore is set to be finalised on or before 30th November, 2024. 

See Also: Top 7 Smart Investment Tips From The Late Rakesh Jhunjhunwala

Last month, it was reported that Amitabh Bachchan‘s family office picked up a small stake in the food delivery firm. Motilal Oswal Financial Services' chairman Raamdeo Agrawal also acquired a stake in Swiggy, The Economic Times said. The amount invested is not known.

Hindustan Composites' transaction comes ahead of Swiggy's potential initial public offering. The SoftBank-backed food delivery behemoth is said to file its draft red herring prospectus with the Indian markets regulator soon, according to a report by YourStory. The company is looking at a $1.3 billion (₹10,896 crore) IPO.

If the listing is successful, the firm will become the only venture capital-backed startup in India to raise more than ₹10,000 crore in a public listing after Paytm. Swiggy's valuation is projected to be 60% of Zomato‘s market capitalisation, considering its profitability and revenue. This would peg Swiggy's worth at approximately $16 billion (₹1.3 lakh crore), a source told the publication.

Read Next: Shipping Corporation Of India’s Subsidiary Receives Approval For Establishment Of Unit In Gujarat SEZ