Swiggy's IPO poised to turn 500 employees into 'crorepatis'
Swiggy's much-anticipated initial public offering (IPO) will turn nearly 500 employees into crorepatis. Each of them will earn at least ₹1 crore from the company's stock market debut today. The IPO, one of the biggest in recent years, will hand out a total of ₹9,000 crore among 5,000 long-serving employees who have played a key role in the company's growth.
Swiggy's ESOP payout among India's largest
The employee stock option (ESOP) payout from Swiggy's IPO is one of the biggest in India's start-up ecosystem. Such wealth generation is rare, with only a handful of companies such as Flipkart having conducted similar exercises in the past. In July 2023, Flipkart had distributed ₹5,800 crore to its current and former employees in one of the single largest ESOP payouts by the Walmart-owned giant.
Top executives receive ESOPs ahead of IPO
Ahead of the IPO, Swiggy's top executives including co-founders Sriharsha Majety, Nandan Reddy, and Phani Kishan received ₹1,600 crore in ESOPs. Others who received the ESOPs were food marketplace CEO Rohit Kapoor, Swiggy Instamart head Amitesh Jha, CFO Rahul Bothra, HR head Girish Menon and CTO Madhusudhan Rao. The move is similar to that of rival Zomato which also created wealth for its employees during its 2021 stock market debut.
Swiggy's IPO: The largest since Paytm's in 2019
Swiggy's ₹11,300-crore IPO will be the largest tech company public offering since Paytm's in 2019. The issue was subscribed 3.6 times with strong demand from institutional investors. Retail investors subscribed to their portion 1.14 times while the portion reserved for employees witnessed 1.65x bidding. Despite reporting a loss of ₹2,350 crore in FY2024, Swiggy continues to expand its operations. The company has partnered with over 200,000 restaurants across India since its inception in 2014.
