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Swiggy, a major player in the food and grocery delivery sector, has seen its $1.3 billion IPO and subsequent stock market debut result in significant gains for both investors and employees. The company's shares listed at a premium on the BSE and NSE, exceeding the initial offer price, indicating strong market confidence in its future prospects. This positive listing outcome has translated into significant returns for several prominent investors who have been backing Swiggy over the years, with Prosus, Accel, Elevation Capital, and SoftBank being some of the most notable names.
Among these investors, Prosus, a South African and Dutch tech investor, has emerged as a major beneficiary. With the listing, Prosus has tripled its initial investment in Swiggy, now holding a 25% stake valued at Rs 26,507 crore. The company had invested around $1.3 billion in Swiggy across eight tranches over the years. Prosus's president and chief investment officer, Ervin Tu, has expressed their continued confidence in Swiggy, emphasizing their long-term investment philosophy. He cited Prosus's successful investment in Tencent, where they still hold a substantial stake, as an example of their commitment to long-term value creation.
Other investors have also witnessed substantial gains from the IPO. Accel, a venture capital firm and one of Swiggy's early backers, has seen its investment multiply 35 times. Their 4% stake in the company is now valued at Rs 4,310 crore. SoftBank, another major investor, has seen its initial $450 million investment grow to nearly $1 billion following the listing. Notably, the listing success has not only benefited institutional investors but also the company's founders and employees. Swiggy's CEO, Sriharsha Majety, holds a stake worth Rs 5,381 crore, while co-founders Nandan Reddy and Rahul Jaimini hold stakes valued at Rs 1,705.3 crore and Rs 1,108.3 crore, respectively.
The IPO's success has had a particularly positive impact on Swiggy's employees. The company's employee stock ownership plan (ESOP) is now worth Rs 10,486.8 crore, as of the closing price. This listing has propelled almost 500 employees into the 'crorepati' league, highlighting the potential for significant wealth creation through employee ownership programs. Swiggy's IPO, which received a strong response from investors, particularly qualified institutional investors, has been a resounding success, generating substantial returns for all stakeholders involved. The company's listing on the stock market marks a significant milestone in its journey and signifies its strong position in the competitive food and grocery delivery landscape.
Source: Swiggy listing rings in robust gains for investors, employees