Modern Insulators is the listed firm dealing in porcelain insulators. It picked a stake worth Rs 5 crore in unlisted shares of IPO-bound food delivery platform Swiggy, an exchange filing showed on 17th September.
The company has a market capitalization of Rs 642 crore and is into the manufacturing and export business of porcelain insulators. Modern Insulators acquired the equity in Swiggy as a long-term investment, it said in a statement.
Modern Insulators bought 1.39 lakh shares, or 0.007% stake in Swiggy at Rs 360 per share, showed the exchange filing.
The company said the share purchase is expected to be completed in roughly 30-45 days. Except for the investment, promoters of Modern Insulators have no interest in Swiggy, added the exchange filing.
Swiggy, one of India's leading food delivery startups, is reportedly planning to file its initial public offering as early as this week, adding to a strong pipeline of IPOs in 2024.
Modern Insulators standalone revenue from operations for FY24 stood at 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.
