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Swiggy IPO will turn 500 employees into crorepatis today
Around 500 Swiggy employees will become crorepatis today after the company makes its stock market debut
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Around 500 Swiggy employees will become crorepatis today after the company makes its stock market debut. According to a Moneycontrol report, the IPO will help put ₹9,000 crore into the hands of employees who saw Swiggy scale from a small firm into a food delivery giant.
Swiggy’s upcoming employee stock option (ESOP) payout will rank among the largest in India’s startup ecosystem, where wealth creation at this scale is uncommon. Before this, Flipkart executed a similar initiative, distributing a staggering $1.4-1.5 billion ( ₹11,600-12,500 crore) to its current and former employees, marking one of the largest wealth generation events in the Indian startup landscape.
While other startups have also executed ESOP payouts, few have managed to turn employees into crorepatis that way Swiggy will do.
Swiggy IPO
Swiggy Ltd.’s shares are set to start trading in Mumbai on Wednesday.
The ₹11,327-crore initial public offer of food delivery and quick-commerce major Swiggy fully subscribed on the final day of the share sale on Friday and ended with 3.59 times subscription.
The food delivery company's $1.3 billion share sale was subscribed more than three times last week, with shares priced between ₹371 to ₹390 apiece. It marked India’s second-largest listing this year, trailing only Hyundai Motor India Ltd.'s record-breaking $3.3 billion IPO.
“Swiggy’s IPO not only underscores the increasing confidence in India’s digital economy but also highlights the competitive dynamics in the quick commerce space,” Mukul Goyal, a co-founder of Stratefix Consulting, told Bloomberg.
The Bengaluru-based company on Tuesday said it has collected ₹5,085 crore from anchor investors.
Going by the draft papers, the company plans to utilise proceeds from the fresh issue for investing in technology and cloud infrastructure; brand marketing and business promotion; and debt payment; and funds will also be allocated for inorganic growth and general corporate purposes.
(With inputs from PTI)
