Swiggy Allots ESOPs Worth INR 1,748 Cr To Founder Sriharsha Majety Pre-IPO

In the run up to its much-awaited initial public offering, foodtech major Swiggy allotted employee stock options (ESOPs) worth over INR 1,748.41 Cr (over $208.2 Mn) to its founder and group CEO Sriharsha Majety. 

As per the startup’s updated draft red herring prospectus (DRHP) filed with SEBI, the company allotted 48.56 Mn shares to Majety as part of its Swiggy Employee Stock Option Plan 2024.

The company’s IPO papers mention that the last selling price of its shares was INR 360, when Ark India sold 210K shares for INR 7.56 Cr. On the basis of this price, Majety was awarded shares worth INR 1,753.27 Cr. 

Besides the CEO, the company also awarded ESOPs to other executives. Overall, the company granted 85.35 Mn ESOPs worth over INR 3,072 Cr  (over $365.9 Mn) under ESOP 2024 scheme.

The company said that no options have vested and no options have been exercised. 

Other prominent names that were recipients of the stock options were CFO Rahul Bothra (2.09 Mn), CTO Madhusudhan Rao Subbarao (2.09 Mn), head HR Girish Menon (2.09 Mn), Ashwath Swaminathan (1.39 Mn), CGO and cofounder Phani Kishan Addepalli (2.09 Mn), cofounder Lakshmi Nandan Reddy Obul (2.09 Mn), Swiggy food marketplace CEO Rohit Kapoor (2.37 Mn), and Swiggy Instamart CEO Amitesh Jha (3.24 Mn). 

It is pertinent to mention that Swiggy filed its updated DRHP last month. Swiggy’s public issue was to comprise a fresh issuance of shares worth INR 3,750 Cr and an offer for sale (OFS) component of 18.53 Cr equity shares. 

In the run up to its IPO, the foodtech major also received approval from its shareholders to increase the size of the fresh issue in its IPO to INR 5,000 Cr.

The OFS will see Majety selling up to 1.74 Mn equity shares in the IPO. Investors such as Accel, Coatue, Alpha Wave, Elevation, Norwest and Tencent will also sell shares as part of the OFS component. While Accel India IV (Mauritius) Ltd will offload 1.05 Cr shares, Alpha Wave Ventures will dump 55.73 Lakh shares as part of the OFS component. 

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