Hindustan Composites Buys ₹5.17 Crore Stake in Swiggy, Shares Surge 9%!Hindustan Composites Buys ₹5.17 Crore Stake in Swiggy, Shares Surge 9%!

Shares of Hindustan Composites Ltd rose by over 9% on Tuesday, September 3, following the announcement of their investment in Swiggy Ltd. The auto parts company revealed in a stock exchange filing that it has agreed to purchase 1.5 lakh shares of Swiggy for ₹5.17 crore in an all-cash deal. This acquisition represents a 0.01% stake in Swiggy, preparing for an IPO. The deal is expected to be completed by November 30, 2024.

Hindustan Composites stated that the acquired shares will be part of its investment portfolio, aimed at gaining potential long-term or short-term returns. Following the news, the company’s stock surged to an intraday high of ₹633.95 on the NSE. However, by 3:00 pm, the stock had eased to ₹606.3, still marking a 4.41% gain for the day.

Year-to-date, Hindustan Composites’ shares have increased by nearly 35%, with a 45% rise in the past six months. The company is involved in producing and marketing friction materials such as brake linings and clutch facings.

Meanwhile, Swiggy is in the spotlight as it prepares for a much-anticipated IPO, targeting a $15 billion valuation and aiming to raise ₹8,500-10,000 crore.