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Swiggy's successful initial public offering (IPO) has made waves in India's startup ecosystem, setting the stage for a significant wealth creation event for its employees. The company's shares debuted 7.7% higher in pre-open trade on November 13, following an oversubscription of its $1.4 billion IPO by more than three times. This surge in valuation has resulted in a substantial payout for Swiggy's workforce, with over 500 employees poised to become crorepatis thanks to the unlocking of employee stock options (ESOPs).
The IPO is expected to unlock Rs 9,000 crore in ESOPs, solidifying Swiggy's position as a major player in India's startup scene, comparable to the likes of Flipkart. In fact, Swiggy's ESOP payout is poised to be one of the highest in the country's startup sector, potentially rivaling the massive $1.4-1.5 billion payout by Walmart-owned Flipkart. This significant windfall highlights the substantial value creation that has occurred within the Indian startup landscape.
Swiggy's success in securing an exemption from the Securities and Exchange Board of India (SEBI) in July has further enhanced the potential for employee wealth creation. This exemption allows employees to sell shares a month after the IPO, bypassing the mandatory one-year lock-in period. This flexibility will provide employees with an earlier opportunity to realize the value of their ESOPs.
According to an Economic Times report, the latest stock ownership plan at Swiggy allocated ESOPs worth nearly Rs 2,600 crore to founders and top management. Notably, this includes founder and group CEO Sriharsha Majety, cofounders Nandan Reddy and Phani Kishan Addepalli, chief financial officer Rahul Bothra, chief technology officer Madhusudhan Rao, food marketplace CEO Rohit Kapoor, and newly appointed CEO of Swiggy Instamart, Amitesh Jha. These individuals, along with nine other top management members, stand to become richer by Rs 50 crore or more as a result of the IPO.
Source: Swiggy IPO: 9 execs who will become richer by Rs 50 crore or more