Swiggy's employees will experience a surge in wealth following its initial public offering (IPO), which is scheduled today. Approximately 500 employees are expected to join the "Crorepati" Club through the food and grocery delivery major's initial public offering (IPO), which is regarded as one of the biggest wealth creation events in India's startup environment. Employee stock options (ESOPs) of Rs 9,000 crore would be made available through the company's IPO.
The IPO, one of India's largest in recent years, demonstrates Swiggy's growth and is a watershed event for India's startup ecosystem.
Despite substantial institutional investment interest, analysts are skeptical about Swiggy's debut. The grey market premium (GMP) reveals a lukewarm mood, with shares trading barely Re 1 higher than the Rs 390 issue price.
Shivani Nyati of Swastika Investmart notes that, while Swiggy's IPO received a 3.59-times subscription, current market volatility and valuation problems make it a dangerous investment.
"Although there is interest, the company's ongoing losses and market conditions mean a cautious approach is best," Nyati added.
Prashanth Tapse, senior analyst at Mehta Equities, believes the listing will be "flat to slightly negative," citing Swiggy's intense competitiveness and negative cash flow model.
Swiggy's employees see today's IPO as a huge wealth-creation event, linking the company with others such as Flipkart, which has also rewarded employees with hefty ESOP payouts. The IPO, an uncommon move in India's startup sector, provides significant benefits to early employees who helped scale the company.
Swiggy's IPO performance will be widely monitored once trading begins, signaling the company's position in the high-stakes food delivery and rapid commerce industries.
Largest technology IPO after Paytm.
Swiggy's IPO of Rs 11,300 crore will be the largest public offering by a technology business since Paytm's in 2019. Retail investors subscribed 1.14 times, while staff bid 1.65 times. The stock will make its debut on November 13. Swiggy's public offering was oversubscribed 3.59 times, mostly due to interest from institutional investors. The company specified a price band of Rs 371-390 per share for the IPO.
When can Swiggy's workers sell their shares?
Swiggy obtained an exemption from the customary one-year lock-in term from the Securities and Exchange Board of India (SEBI) in July this year, allowing staff to sell shares one month after the IPO.
According to Swiggy's prospectus, the company has already implemented three Esop plans: one in 2015, one in 2021, and one in 2024. This amounts to a total of over 230 million shares. Among these, 9 million options have been converted into shares, with the remainder yet to be exercised.
