Multibagger electrical equipment stock is in focus as company bought 1,38,800 equity shares of Swiggy Ltd worth Rs 4,99,68,000
Softbank-backed Swiggy Ltd is considering filing for its IPO this week, aiming to raise over USD 1 billion.
Indian markets witnessed a mixed performance today, September 17, 2024. The benchmark BSE Sensex Index is marginally higher by 0.10 per cent at 83,068, while the broader market displayed a mixed bag with the Mid-Cap Index gaining 0.03 per cent and the Small-Cap Index slipping 0.37 per cent.
Swiggy IPO Coming Soon
Amidst growing buzz about Swiggy's potential Initial Public Offering (IPO). Softbank-backed Swiggy Ltd is considering filing for its IPO this week, aiming to raise over USD 1 billion.
Founded in 2014, Swiggy has become a household name in India, partnering with over 150,000 restaurants and facing competition from established players like Zomato and Amazon India. A successful Swiggy IPO would be a significant addition to the already strong pipeline of Indian IPOs this year. With over USD 7.8 billion raised so far, 2024 has already surpassed the previous two years in terms of IPO activity, highlighting India's growing economic attractiveness to global investors.
Electrical Equipment Company Invests in Swiggy
The biggest news today came from an electrical equipment company, which announced its Board of Directors approved an investment in Swiggy Limited.
Here's a breakdown of the key details:
- Investment: Rs 360 per share for 1,38,800 equity shares, totalling Rs 499.68 lakh (approximately USD 6.2 million).
- Nature of Investment: Long-term investment.
- Swiggy: The Company Started in 2014. Swiggy is India’s leading, new-age, consumer-first, technology platform building innovative products and solutions that deliver unparalleled convenience to urban consumers. Swiggy is a pioneer in bringing the most loved services to Indian consumers.
- Completion Timeline: Approximately 30-45 days.
The buzzing company that invested in Swiggy Ltd pre-IPO is MODERN INSULATORS LTD.
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Modern Insulators Ltd is a leading manufacturer and exporter of porcelain insulators, established in 1982. Part of the Modern Group of Industries, the company is ISO certified and supplies its products to various sectors including utilities, railways and EPC companies. MIL offers a range of insulators, including hollow, solid core, long rod, and railway types, used in diverse applications like weather protection, substation support, high-voltage transmission and railway infrastructure. In addition to its core business, MIL has ventured into composite insulators through its subsidiary, Modern Composites Private Limited, and has formed joint ventures with Shriji Designs and Sikka Engineering Company for railway EPC projects.
The company has a market cap of over Rs 600 crore with a PE of 16x whereas the industry PE is 60x. The stock gave multibagger returns of 136.64 per cent from its 52-week low of Rs 59.54 per share. Investors should keep an eye on this micro-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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