Swiggy’s IPO listing, one of the highly anticipated has marked a financial milestone, turning 500 of its employees into crorepatis through lucrative ESOPs. With shares debuting at a premium, Swiggy joins the ranks of major tech firms rewarding employees with substantial wealth. This move highlights Swiggy’s growth and the rising value of India’s tech sector.
Swiggy‘s much-anticipated debut on the stock market has not only attracted investor attention but is also set to elevate the financial standing of its employees, with around 500 workers potentially joining the “crorepati” ranks. This IPO milestone marks a significant moment for Swiggy’s workforce, translating years of dedication and growth into tangible financial rewards for many.
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Swiggy’s Stock Market Debut: A Strong Start
Swiggy went public on November 13, listing its shares at ₹420 on the National Stock Exchange (NSE), representing a 7.7% premium over its issue price of ₹390. On the Bombay Stock Exchange (BSE), shares opened at ₹412, with an impressive 5.64% increase from the IPO price, reflecting strong market confidence in the company’s performance and growth potential. This positive debut bodes well for Swiggy’s valuation and stability in the stock market.
Employee Wealth Creation Through ESOPs
A standout feature of Swiggy’s IPO is its employee stock option plans (ESOPs), which will play a transformative role in creating wealth for its staff. As per Swiggy’s Draft Red Herring Prospectus (DRHP), the company had 231 million outstanding ESOPs as of September 2024, valued at ₹9,046.65 crore based on the IPO’s upper price band. This figure underscores the significant wealth that Swiggy employees stand to gain from the IPO, with some stock holdings now worth crores.
For around 500 Swiggy employees, these ESOPs are expected to turn them into “crorepatis” — individuals with assets over ₹1 crore — enabling a new level of financial security. Swiggy’s ESOP payout scheme will impact a broader group of roughly 5,000 employees, as reported by the Economic Times, allowing many more to benefit from their contributions to Swiggy’s success.
Comparisons to Industry Leaders in Wealth Creation
Swiggy’s employee wealth creation echoes similar moves by its industry peers and tech giants. Zomato’s IPO in July 2021, for example, generated substantial wealth for its team, with 18 dollar millionaires emerging from the company’s ₹9,375 crore IPO. Likewise, Flipkart has engaged in ESOP buybacks totaling $1.5 billion, consistently rewarding employees with substantial wealth. When Paytm went public in November 2021, it created around 350 crorepatis among its workforce.
SEBI Exemption Enhances Liquidity for Employees
Swiggy’s efforts to enhance employee wealth through the IPO received a boost from the Securities and Exchange Board of India (SEBI), which granted the company an exemption allowing employees to sell their shares just one month after the IPO instead of the standard one-year lock-in period. This exemption, secured in July, provides Swiggy’s employees with quicker access to their ESOP wealth, enabling them to capitalize on their holdings and unlock greater liquidity.
A Positive Outlook for Swiggy and its Employees
Swiggy’s IPO symbolizes a turning point for its employees, many of whom are now set to benefit from the company’s growth in a transformative way. However, as employees begin exercising their ESOPs, the increased liquidity could slightly impact Swiggy’s stock price due to share dilution. Still, the IPO signals Swiggy’s successful journey from a homegrown startup to a publicly traded entity with a robust market presence.
In an industry that has seen rapid evolution and significant competition, Swiggy’s IPO story stands out as an example of how companies can share success with their employees. By empowering hundreds of team members to achieve crorepati status, Swiggy reinforces its commitment to employee welfare and creates a lasting legacy of wealth distribution within its ranks. The IPO not only represents a financial victory but also highlights the role that dedicated employees play in building and sustaining successful enterprises.
