Swiggy’s IPO, scheduled for November 13, is expected to create a wave of wealth among its employees. The IPO of a food and grocery delivery company is considered one of the biggest wealth creation events in India’s startup ecosystem, with around 500 employees ready to join the “Crorepati” Club through this offer. 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 the Indian startup ecosystem, following in the footsteps of Flipkart.
The company’s ESOP payout will be among the best in India’s startup scene, rivaling Walmart-owned Flipkart’s massive payout of $1.4 billion to $1.5 billion.

Largest tech IPO after Paytm

Swiggy’s Rs 11,300 crore IPO would be the largest public offering by a technology company since Paytm’s IPO in 2019. The issue was subscribed 3.6 times. Individual investors subscribed to their share 1.14 times, while the share reserved for employees was the subject of auctions 1.65 times. The title is set to debut on November 13. Swiggy’s public issue was subscribed 3.59 times, mainly due to interest from institutional investors. The company had set a price band of Rs 371 to 390 apiece for the IPO.
According to an Economic Times report, Swiggy’s founders and senior management employees have been allotted Esops worth nearly Rs 2,600 crore in its latest shareholding plan. These include Group founder and CEO Sriharsha Majety; co-founders Nandan Reddy and Phani Kishan Addepalli; CFO Rahul Bothra; Madhusudhan Rao, Chief Technology Officer; Food Market CEO Rohit Kapoor; and Amitesh Jha, newly appointed CEO of Swiggy Instamart.

When can Swiggy employees sell their shares

An exemption from the mandatory one-year lock-up period, obtained by Swiggy from the Securities and Exchange Board of India (SEBI) in July this year, means employees are allowed to sell shares a month after the IPO. sotck exchange.
According to Swiggy’s prospectus, the company has rolled out three Esop plans so far: one in 2015, one in 2021 and one in 2024. This totals a pool of almost 230 million shares. Of these, 9 million options have been exercised on shares, while the rest have not yet been exercised.

Flipkart pays $1.4-1.5 billion to employees

E-commerce major Flipkart has made buyouts of Aesop totaling $1.5 billion in different tranches over the years. In 2023, Flipkart made a one-time payment of $700 million to its current and former employees as part of its separation from PhonePe, when the payments company moved from Singapore to India. Considered one of the largest employee liquidity events by a local internet company, it surpassed the $500 million windfall for employees when Walmart acquired Flipkart in 2018.