Swiggy shareholders back IOCC status, limit foreign ownership to 49.5%

Swiggy's shareholders have given the green light to strategic governance amendments aimed at maintaining Indian control of the company ahead of its planned public listing. The approvals include the adoption of Indian Ownership and Control Condition (IOCC) status and a cap on foreign ownership at 49.5 percent, reflecting regulatory requirements for Indian-focused digital platforms.

In a related move, shareholders also backed amendments to the company's Articles of Association that will allow co-founders Sriharsha Majety and Phani Kishan Adepally to retain majority representation on the board of directors. These provisions are designed to ensure continuity in the company's leadership structure and strategic direction as it transitions toward listing on Indian bourses.

The decisions represent a balancing act between attracting international capital and maintaining domestic governance standards. The 49.5 percent foreign ownership cap aligns Swiggy with regulatory frameworks governing major digital platforms in India, while the IOCC status designation underscores the company's commitment to Indian ownership and operational oversight.

Swiggy, which operates one of India's largest food delivery networks alongside competitor Zomato, has previously signalled its intention to pursue a public offering. The governance framework approved by shareholders positions the company to meet regulatory expectations for a major Indian technology firm while preserving founder control during its transition to a publicly-listed entity.