Swiggy IPO Launch to Make 5,000 Employees Crorepatis Today

Swiggy: Five thousand current and former employees own shares in the Employee Stock Option Plan (ESOP), which has a total value of ₹9,000 crore. 500 of the 5,000 employees are expected to become crorepatis at the higher price range of the original share price (Rs 390), according to the sources.

According to the company’s Draft Red Herring Prospectus (DRHP) report, the total number of outstanding ESOPs as of September 2024 stood at 231 million, amounting to a total value of ₹9,046.65 crore based on the IPO’s upper price band of ₹390 per share.

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As of September 2024, the company had 231 million outstanding ESOPs, valued at ₹9,046.65 crore based on the IPO's upper price band of ₹390 per share, according to the company's Draft Red Herring Prospectus (DRHP) report.

According to the research, throughout the years, the e-commerce giant Flipkart, one of the largest wealth producers in the online economy, has carried out ESOP buybacks totalling $1.5 billion across multiple tranches.

In the meantime, Zomato, Swiggy's fiercest rival, made 18 million dollars at its ₹9,375 crore IPO in July 2021. Additionally, the report stated that approximately 350 current and former employees became crorepatis at the time of Paytm's initial public offering (IPO) in November 2021.

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Swiggy’s DRHP report showed that the company has introduced three ESOP plans to date: Swiggy Employee Stock Option Plan 2015, Swiggy Employee Stock Option Plan 2021, and Swiggy Employee Stock Option Plan 2024.

In July of this year, Swiggy also obtained an exemption from the Securities and Exchange Board of India (SEBI), which permits its staff to sell shares a month after the initial public offering (IPO) rather than waiting for the customary one-year lock-in period. It is anticipated that this action will improve their chances of earning wealth.

However, the exercise of ESOPs will result in increased liquidity of shares, potentially diluting the stakes of existing shareholders, which could affect the market price of Swiggy’s shares.

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