Swiggy IPO Buzz: 500 Employees to Turn 'Crorepatis' With Rs 9,000 Crore ESOP Plan

Around 5,000 persons associated with Swiggy, including current and former employees, are expected to gain significantly from the Bengaluru-based quick commerce player’s listing in the stock market

Outlook Start-Up Desk

Updated on: 13 November 2024 6:06 pm

Swiggy IPO Photo: Getty Images

The most-anticipated Swiggy’s Rs 11,327 crore IPO has been doing rounds among investors and the company’s own employees as the food delivery platform is poised to unlock employee stock option plans (ESOPs) worth Rs 9,000 crore today, November 13.

This move will make 500 staffers ‘crorepatis’ who will earn at least Rs 1 crore each. Of these, 70 employees will make more than Rs 8.5 crore each, according to a MoneyControl report.

ESOPs are shares offered by an employer to his employees at a low or no additional cost as part of their compensation package which they can encash after a specific period at a specific price. The longer one works with a company, the higher they get as ESOPs.

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Around 5,000 persons associated with Swiggy, including current and former employees, are expected to gain significantly from the Bengaluru-based quick commerce player’s listing in the stock market.

The stock listed at an 8 per cent premium on the BSE and NSE at Rs 420 apiece, compared to its issue price of Rs 390 apiece. Its valuation at the upper end of the IPO price was Rs 87,087 crore.

Other Companies Offered ESOPs in Past

Prior to Swiggy, ecommerce giant Flipkart also paid Rs 5,800 crore to its 17,000 current and former employees in July 2023, the report added. Additionally, fintech major Paytm also spent Rs 3,336 crore on ESOP payments to top brass since October 2021 --- even as the company's stock price remains over 50% below its IPO price in November 2021.

Swiggy's rival, Zomato has also allotted 38.72 lakh equity shares under its ESOP plan. The update was reported by the company on the exchange filing on August 29.

Read More | While Facing RBI, SEBI Heat, Paytm Spent Rs 516 Crore on ESOPs to Top Brass

Besides ecommerce and quick commerce companies, the fashion and beauty startup 'Nykaa' issued 7.65 lakh equity shares under its employee stock option (ESOP) scheme in September 2024.

Delhivery also allotted 6.15 lakh equity shares on September 10, while Tracxn allotted 1.8 lakh equity shares under its ESOP schemes earlier this year.