Swiggy IPO: 500 Employees To Join The ‘Crorepati’ Club

SUMMARY

The wealth generation is a result of the stock options the company allotted to its workforce over the years under ESOP schemes

About 5,000 current and former Swiggy employees currently hold stake in the company, with the total stock option stock options INR 8,959 Cr at the upper end of the IPO price band

Swiggy’s much-awaited public listing will happen on Wednesday, with the company’s shares listing on the BSE and the NSE

Foodtech giant Swiggy’s public market listing will result in around 500 employees of the company joining the ‘crorepati’ club, sources told Inc42.

The wealth generation is a result of the stock options the company allotted to its workforce over the years under ESOP (employee stock option plan) schemes.

While Swiggy allotted stock options to 3,965 employees under its ESOP 2015 scheme, the ESOP 2021 plan saw 67 employees, beside the key management personnel, get stock options, as per its red herring prospectus (RHP).

The company also issued stock options to employees under ESOP 2024. However, the number of employees who received options under this is not clear.

The sources cited above said that about 5,000 current and former Swiggy employees currently hold stake in the company.

Across the three aforementioned schemes, the foodtech major granted a total of 22.97 Cr stock options to its employees. At the upper end of the IPO price band of INR 371-390, the Swiggy employees cumulatively hold stock options worth INR 8,959 Cr (about $1.06 Bn).

The company’s shares are set to list on the BSE and the NSE on Wednesday (November 13). Its public issue was oversubscribed 3.59X, receiving bids for 57.53 Cr shares as against 16.01 Cr shares on offer.

The total size of the IPO was INR 11,324 Cr. The offer comprised a fresh issue of INR 4,999 Cr and offer for sale (OFS) of 17.5 Cr shares.

Tencent, Alpha Wave, Goldman Sachs Asia, Norwest Venture Partners, Times Internet, among others, divested their stakes under the OFS. Swiggy’s early backers Accel India and Elevation Capital will pocket more than 34X returns by selling a portion of the stake in the company. Meanwhile, Prosus will net INR 4,254.7 Cr or $500 Mn, a 3X return on its investment, from the IPO.

It is pertinent to note that Swiggy’s founder Sriharsha Majety, Nandan Reddy and Rahul Jamin are also set to make big bucks from the IPO. While Reddy and Majety will be pocketing INR 68.08 Cr each by selling 17.45 Lakh shares, Jaimini will be earning INR 45.38 Cr by selling 11.63 Lakh shares.