In one of the biggest wealth creation exercises in the startup ecosystem, the current and former employees of Swiggy are set to receive a Rs 9,000-crore windfall once the food delivery and quick commerce player goes public on Wednesday.
According to sources, as many as 5,000 employees (current and former) are expected to benefit from the listing. Reports suggested that 500 employees are expected to become crorepatis.
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The Rs 11,300-crore initial public offer (IPO), which has a price band of Rs 371 to Rs 390 per share, is expected to unlock value of 229.73 million outstanding shares given under the employee stock options plan (Esops).
The beneficiaries will include the top management, who were allotted shares of over 66 million shares (Rs 2,600 crore) in the July stock ownership plan.
These include founder and group CEO Sriharsha Majety, co-founders Nandan Reddy, Phani Kishan Addepalli and Madhusudhan Rao Subbarao (chief technology offer), Rahul Bothra (chief financial officer) and CEO of Swiggy Instamart Amitesh Jha. The list also has former chief growth officer Ashwath Swaminathan.
The IPO was subscribed 3.59 times, with the QIB portion at 6.02x, non-institutional investors at 41% and retail at 1.14x and employees 1.65x.
Last week, Swiggy raised Rs 5,085.02 crore from anchor investors with more than 75 allottees. Domestic institutions garnered as much as 56% of the anchor books, including 19 mutual fund houses and top insurance companies.
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Zomato, which listed in 2021, also created wealth for its staffers during its IPO. The Gurugram-based company had an Esop pool of around Rs 7,000 crore.
In 2021, more than 350 became crorepatis after the Policybazaar IPO. Earlier, Flipkart had paid $1.4-1.5 billion (Rs 11,600-12,500 crore) to its current and former employees in what was one of the largest wealth creation drives in India’s startup ecosystem.
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