Swiggy delivers 19% gain on listing day

BL Bengaluru Bureau Updated - November 13, 2024 at 08:54 PM.

Swiggy poises to create 70 new dollar millionaires, post listing, as employees stand to benefit

Sriharsha Majety, Managing Director and Group Chief Executive Officer of Swiggy gives a memento to Managing Director and CEO of National Stock Exchange of India Ashishkumar Chauhan ahead of the listing ceremony of its Initial Public Offering (IPO) at the National Stock Exchange (NSE) in Mumbai, India, November 13, 2024. | Photo Credit: Reuters

Swiggy shares ended the listing day trading session at ₹464 on NSE, an 18.97 per cent premium to the IPO price of ₹390, and at ₹455.95 on BSE, a 16.9 per cent premium.

Swiggy’s ₹11,300-crore-IPO was subscribed 3.59 times primarily driven by interest from institutional investors. The shares got listed on bourses at nearly 8 per cent premium.

Wealth creation

Meanwhile, Swiggy’s IPO is poised to create around 70 new dollar millionaires, as former and current employees stand to gain more than ₹8.5 crore ($1 million) each, according to sources familiar with the development. This significant wealth creation marks a major milestone for the food delivery and quick commerce leader’s workforce.

With this IPO, the firm is set to unlock wealth to the tune of ₹9,000 crore in employee stock ownership plan (ESOP) wealth for 5,000 of its current and former employees, with around 500 Swiggy employees expected to enter the ‘crore-pati’ club.

These 70 employees are a part of the 5,000 workforce who are set to benefit from the ESOP payouts. Till date, Swiggy has distributed ₹500 crore in ESOPs. In July this year, the company had announced its plan to buy back stocks worth up to $65 million.

Swiggy’s founders and top management staffers were allocated ESOPs worth nearly worth $271 million in its latest stock ownership plan.

It includes 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.

Published on November 13, 2024 15:23

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