Swiggy IPO turns 500 employees into crorepatis as shares surge on NSE
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Swiggy’s debut on the stock market on Wednesday proved to be a monumental event for over 500 current and former employees, elevating them to "crorepati" status.
The food delivery and quick commerce platform’s listing, with a premium of nearly 8% over its issue price, has reportedly unlocked Rs 9,000 crore in Employee Stock Option Plans (ESOPs) for around 5,000 employees.
The company’s initial public offering (IPO) was priced between Rs 371 and Rs 390 per share, with shares debuting on the National Stock Exchange (NSE) at Rs 420, an increase of 7.69% over the issue price. On the Bombay Stock Exchange (BSE), Swiggy’s shares opened at Rs 412, a 5.64% rise. The stock later surged to Rs 419.95, with the company’s valuation reaching Rs 89,549.08 crore during early trading.
According to insider sources, the ESOP pool, valued at Rs 9000 crore, allowed 500 employees from the total 5,000 ESOP holders to become crorepatis at the highest IPO price of Rs 390 per share.
Swiggy’s Rs 11,327-crore IPO was oversubscribed by 3.59 times on its final day, with a fresh issue of shares worth Rs 4,499 crore and an Offer-For-Sale (OFS) of Rs 6,828 crore.
As outlined in the draft papers, Swiggy plans to use proceeds from the fresh issue to invest in technology infrastructure, brand promotion, debt repayment, and expansion, including potential acquisitions and general corporate expenses.