Swiggy, India’s leading food-tech company, has made headlines with its recent Initial Public Offering (IPO), which has turned around 500 of its employees into ‘crorepatis’ (millionaires).
The IPO, which raised a staggering ₹11,327 crore, is one of the largest in recent years and has unlocked an estimated ₹9,000 crore in Employee Stock Ownership Plan (ESOP) options.
Swiggy IPO: A Windfall for Employees
The IPO saw Swiggy’s shares debut at ₹420 on the National Stock Exchange. This is a significant increase from the issue price of ₹390.
This surge in share price has resulted in a massive wealth creation event for Swiggy’s employees, with around 5,000 current and former employees set to benefit from the ESOP payout.
Among them, approximately 500 employees have crossed the crorepati threshold, thanks to the generous stock options.
Swiggy’s IPO is not just a financial milestone for the company. It is also a strategic move to reward its workforce for their contributions to the company’s growth.
The ESOP payout is one of the largest in India’s startup ecosystem, rivaling similar exercises by Flipkart and Zomato.
CEO’s Perspective and Market Response
Sriharsha Majety, Swiggy’s Group CEO, expressed his excitement about the IPO and its impact on the employees.
Sriharsha stated, “We are thrilled to see our employees benefit from this milestone.”
He added, “Their hard work and dedication have been instrumental in Swiggy’s success, and this IPO is a testament to their efforts.”
Despite the positive outcome for employees, the market response to Swiggy’s IPO has been mixed.
While the retail segment saw moderate subscription, institutional interest was stronger, with the Qualified Institutional Buyer (QIB) portion being oversubscribed.
Analysts have also predicted a flat to negative listing for Swiggy’s shares, with the grey market premium (GMP) indicating only a marginal gain above the issue price.
Swiggy’s IPO marks a significant step in its journey as a public company.
With the funds raised, Swiggy plans to invest in technology, expand its delivery network, and explore new business opportunities.
The company’s revenue from operations for the financial year 2022-23 stood at ₹8,264.6 crore. This was up from ₹5,704.9 crore in the previous fiscal year.
Despite reporting a net loss of ₹4,179 crore in 2022-23, Swiggy remains optimistic about its future growth prospects.
The Swiggy IPO has not only created wealth for its employees but also set the stage for the future growth.
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