Swiggy IPO list: About 500 employees likely to become crorepatis

Swiggy’s much-anticipated IPO may not deliver major listing gains for retail investors, but promises a windfall for employee ESOP holders.

About 5,000 current and former employees are set to benefit from an estimated Rs 9,000 crore in wealth creation through stock options, The Economic Times reported. And close to 500 employees could join the post-listing “crorepati” club, making this a standout offering in India’s startup landscape.

Swiggy’s IPO, which will raise Rs 11,327 crore, has a price band of Rs 371-390 per share. However, the gray market premium (GMP) of Rs 2 indicates only a marginal gain of 0.51% over the issue price, suggesting a reduced listing on Wednesday.

The ET report noted that founders and top management hold significant ESOPs from Swiggy’s recent stock plan, including group CEO Sriharsha Majety, co-founders Nandan Reddy and Phani Kishan Addepalli and other senior leaders.

Swiggy’s ESOP liquidation stands alongside only a few high-profile cases in India’s startup ecosystem, with Flipkart’s buyback events being among the biggest.

SWIGGY IPO DETAILS

The IPO has seen a mixed response. While the retail segment was moderately undersubscribed at 1.14 times, institutional interest was stronger, with the QIB side oversubscribed by more than six times.

Founded in 2014, Swiggy has expanded to partner with over 200,000 restaurants in India, competing with Zomato, Amazon and Tata BigBasket.

Despite reporting a loss of Rs 2,350 crore in FY2024, Swiggy continues to grow, signaling the potential for future gains in a highly competitive market.