Swiggy’s Stock Market Debut Turns 500 Employees Into 'Crorepatis' With Rs 9,000 Crore In ESOPs

Swiggy's initial public offering (IPO) had set the price band between Rs 371 and Rs 390 per share, marking a significant milestone for the company and its employees

Swiggy's highly anticipated stock market debut on Wednesday sent shockwaves through the industry, propelling more than 500 current and former employees into the "crorepati" club. The listing of the food delivery and quick commerce giant is expected to unlock a massive Rs 9,000 crore in Employee Stock Option Plans (ESOPs) for approximately 5,000 staff members, according to a PTI report citing sources familiar with the matter.

Swiggy's initial public offering (IPO) had set the price band between Rs 371 and Rs 390 per share, marking a significant milestone for the company and its employees. 

"The total Employee Stock Option Plan (ESOP) pool is worth Rs 9,000 crore, with 5,000 past as well as present employees holding them. At the upper price range of the initial share price (Rs 390), 500 employees out of the 5,000 are set to become crorepatis," a person in the know shared the details, requesting anonymity in the report.

Swiggy's shares made a strong market debut on Wednesday, listing at a premium of nearly 8 per cent over the issue price of Rs 390 on the NSE. The stock opened at Rs 420, reflecting a 7.69 per cent jump from the issue price, and later reached Rs 419.95, marking a 7.67 per cent increase. On the BSE, the shares listed at Rs 412, up 5.64 per cent from the issue price, before climbing further during the trading session.

At the time of listing, Swiggy's market capitalisation stood at an impressive Rs 89,549.08 crore.

Swiggy’s Rs 11,327-crore IPO had been fully subscribed by the final day of the share sale, with demand overshooting by 3.59 times. The IPO included a fresh issue of Rs 4,499 crore in shares, alongside an Offer-For-Sale (OFS) of Rs 6,828 crore.

As outlined in the company's draft papers, Swiggy plans to use the proceeds from the fresh issue for key investments in technology and cloud infrastructure, brand marketing, business promotions, debt reduction, and inorganic growth initiatives. Additionally, funds will be allocated for general corporate purposes.