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.
