This means that domestic ownership in the company has risen to 50.24 per cent.
In a regulatory filing, Swiggy clarified that the development by itself result in any change to the ownership or control status of the Company, nor does it have any impact on the share capital, management, business operations, voting rights or rights attached to the equity shares of the Company.
Recently, the company failed to get shareholder approval for its proposal to amend its Articles of Association (AoA) which were aimed at facilitating the company’s transition into an Indian owned and controlled company (IOCC). The special resolution got nod from 72.36 per cent of the company’s shareholder approval, falling short of the 75 per cent mandatory threshold.
The Company does not have an identifiable promoter group. In a company with a diversified shareholding structure, a governance architecture that provides for representation of the founders and senior management at the Board level is both appropriate and necessary, to ensure continuity of domestic management oversight, accountability for the execution of the Company’s strategic plan, and the Board composition required to support the Company’s Indian Owned and Controlled Company (“IOCC”) objectives, Swiggy had said explaining the rationale for the amendment.
The Proposed Amendments were a preparatory step towards the Company’s objective to qualify as an IOCC under applicable Indian foreign exchange laws and regulations – an objective that is consistent with the direction taken by comparable companies in India and which the Company believes will drive long-term shareholder value. Further that the IOCC classification will additionally require resident Indian shareholding to exceed 50 per cent along with applicable regulatory and shareholder approvals, it added.
