Swiggy's IPO likely to create 500 crorepatis; 5,000 employees set to earn Rs 9,000 crore in total – Times of India
Swiggy’s IPO set for November 13 debut is set to create a wave of wealth among its employees. Food and grocery delivery major’s IPO is being seen as one of the largest wealth creation events in India’s startup ecosystem, with around 500 employees set to enter the ‘Crorepati’ Club through this offering. The company’s IPO will unlock Rs 9,000 crore in employee stock options (ESOPs). This significant wealth creation positions Swiggy as a major player in India’s startup ecosystem, following in the footsteps of Flipkart.
The company’s ESOP payout will be among the top in India’s startup scene, rivaling Walmart-owned Flipkart’s massive $1.4-1.5 billion payout.
Biggest technology IPO after Paytm
Swiggy’s Rs 11,300-crore IPO would be the biggest technology company’s public offering since the Paytm IPO in 2019. The issue was subscribed 3.6 times. Retail investors subscribed to their portion 1.14 times, while the portion reserved for employees saw 1.65x bidding. The stock is set to debut on November 13. Swiggy’s public issue was subscribed 3.59 times primarily driven by interest from institutional investors. The company had set a price band of Rs 371-390 apiece for the IPO.
According to an Economic Times report, Swiggy founders and employees in the top management were allocated Esops worth nearly Rs 2,600 crore in its latest stock ownership plan. These include founder and group CEO Sriharsha Majety; cofounders Nandan Reddy and Phani Kishan Addepalli; chief financial officer Rahul Bothra; chief technology officer Madhusudhan Rao; food marketplace CEO Rohit Kapoor; and newly appointed CEO of Swiggy Instamart, Amitesh Jha.
When can Swiggy employees sell their shares
An exemption on the mandatory one-year lock-in period, secured by Swiggy from the Securities and Exchange Board of India (SEBI) in July this year means that employees are allowed to sell shares a month after the IPO.
According to Swiggy’s prospectus, the company has rolled out three Esop plans so far—one each in 2015, 2021 and 2024. This aggregates to a pool of almost 230 million shares. Of these, 9 million options have been exercised into shares, while the remaining are yet to be exercised.
Flipkart’s $1.4-1.5 billion payout to employees
Ecommerce major Flipkart has conducted Esop buybacks aggregating to $1.5 billion across various tranches over the years. In 2023, Flipkart made a one-time payout of $700 million to current and former employees as part of its separation from PhonePe, when the payments firm moved domicile from Singapore to India. Billed as one of the largest liquidity events for employees by a local internet firm, it topped the $500 million bonanza for employees when Walmart acquired Flipkart in 2018.
