Swiggy shareholder Prosus may receive promoter tag in platform’s IPO launch

Prosus, the largest shareholder in Swiggy, may be classified as a promoter in the upcoming initial public offering (IPO) of the online food and grocery delivery company, according to a report by The Economic Times (ET). Prosus, the Dutch-listed investment arm of South African conglomerate Naspers, has been attempting to reduce its holding in Swiggy from 33 per cent to below 26 per cent. However, talks with potential investors for the stake reduction have not been successful.

Under Indian regulations, a shareholder holding 26 per cent or more is considered a promoter, subjecting them to restrictions on the shares they can sell post-IPO.