Swiggy IPO: Swiggy’s IPO to unlock Rs 9,000 crore in Esop wealth for 5,000 employees

Swiggy’s upcoming IPO is set to unlock Rs 9,000 crore in employee stock ownership plan (Esop) wealth for around 5,000 current and former employees, marking one of the largest wealth creation events of its kind in India’s startup ecosystem. Sources said around 500 employees would stand to enter the ‘crorepati’ club through the public offering.

So far, Swiggy has distributed Rs 500 crore in Esops, and the public listing could significantly boost returns for employee shareholders.

ET had reported earlier that the founders and top management of Swiggy were allocated Esops worth nearly Rs 2,600 crore in its latest stock ownership plan.

These include 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.

While Reddy is also the company’s head of innovation, Addepalli is Swiggy’s chief growth officer.

This scale of Esop liquidation has been matched only by ecommerce major Flipkart which has undertaken bigger scale of Esop buyback or payouts in the past.

The Rs 11,300-crore-IPO would be the biggest technology firm public offering since the Paytm IPO in 2019. It will debut trading on bourses on Wednesday. The company’s public issue was subscribed 3.59 times primarily driven by interest from institutional investors.

The company had set a price band of Rs 371-390 apiece for the IPO.