Swiggy to make 500 employees crorepatis after its IPO: Here's how

On the Bombay Stock Exchange (BSE), the stock opened at Rs 412, registering a 5.64% gain from the issue price. This listing is set to bring significant value through Esops

After a successful Initial Public Offering (IPO) on Wednesday, popular food delivery aggregator Swiggy is set to turn nearly 500 of its employees into millionaires through its Employee Stock Ownership Plan (Esop). Swiggy’s shares debuted at Rs 420 on the National Stock Exchange (NSE), reflecting a 7.7% premium over the Swiggy IPO price of Rs 390. On the Bombay Stock Exchange (BSE), the stock opened at Rs 412, marking a 5.64% gain from the issue price. 

What is an Employee Stock Ownership Plan (Esop)? 

An Employee Stock Option Plan (Esop) allows employees to acquire ownership in their company through stock. Typically, these shares are offered at a price lower than the current market value, providing a discount. The primary goal of an Esop is to foster employee loyalty and long-term commitment. 

 

Employees must usually wait through a designated “vesting period” before exercising their stock options. Once the vesting period is complete, they can purchase the designated number of shares. ESOPs are typically granted based on an employee’s tenure or performance. 

500 Swiggy employees to become crorepatis 

According to the company’s Draft Red Herring Prospectus (DRHP), the total number of outstanding Employee Stock Options (ESOPs) as of September 2024 amounted to 231 million, valued at Rs 9,046.65 crore based on the IPO’s upper price band of Rs 390 per share. 

This development is expected to elevate nearly 500 Swiggy employees into the “crorepati” bracket, with their ESOP holdings now worth several crores. In total, around 5,000 employees are set to benefit from the ESOP payouts, according to reports from The Economic Times.