Swiggy made a respectable market entry today after it listed its shares on the National Stock Exchange (NSE) with a premium of 7.6%, a huge milestone in the history of the food delivery and grocery omnichannel player. This initial public offering (IPO) which was 3.59 times subscribed got a total amount of 11300 crores. Out of this, fresh issuance accounted for 4499 crores while an OFS comprised of 1751 crore shares worth 6828 crores. Swiggy had set the IPO price within the bracket of 371 rupees and 390 rupees a share, but the final round of listing was completed in 370 rupees, which only denotes the high end of their price bracket.
Market Sentiment and Swiggy’s IPO Performance
When Swiggy’s IPO was launched, it was met with an encouraging reaction from the investors. The issue was oversubscribed by a factor of 3.6. Some hesitation was noted in the first two days because of the lack of interest on the part of the retail investors, however, the QIBs’ interest shone in the IPO allowing it to be successful. This share of the QIB portion which was subscribed stood tall at 6.02. The share of the retail investors was sufficient but moderate as the subscriptions to this portion stood at 1.14 while that of employees subscription stood at 1.65. However, the same cannot be said of the high-net-worth individuals who appeared to have been less enthusiastic as their subscription rate for their designated portion stood at 0.41.
Although there was a lot of hype and interest around the opening that Swiggy had on the stock market, the analysts kept their scepticism and maintained their point of view from the fact that other renowned companies like LIC and Hyundai India who were able to IPO recently have not had an easy ride as far as emotions from the investors are concerned. However, given the brand power of Swiggy together with the apprehension for the backing of investors, their highlight of the short term performance was evident.
Wealth Creation for Employees for Swiggy through ESOPs
The Swiggy IPO plans comes across as a great opportunity for wealth generation for the employees of the company. More than 500 employees are likely to get crores with each of them set to earn at least ₹1 crore from the company’s employee stock option (ESOP) payout. All in all, with this IPO, 5,000 employees stand to benefit and cumulatively receive a staggering ₹9,000 crore that’s at least. This ESOP drive is proof of what Swiggy aims to do with its employees who have contributed for their expansion in the number of years recently.
The payout of ESOP by Swiggy is one of the highest in India’s startup sector while following suit of other industry leaders in wealth creation. Markedly, Flipkart had earlier undertaken a massive ESOP exercise that provided a total amount of 1.4 to 1.5 billion dollars (10,000 crore INR) to workers in several buy rose buyouts including a 5,800 crore INR to 17,000 employees in July 2023. This is consistent with another trend that is emerging among major Indian startups, the creation of significant wealth among employees or people working for that business.
Key Figures in Swiggy’s IPO Success
Food delivery CEO Swiggy’s growth was catalyzed by co-founders Sriharsha Majety, Nandan Reddy, and Phani Kishan and leaders like Rohit Kapoor and Amitesh Jha, the Instamart head. Together with the company’s finance and HR teams, they managed to obtain a reasonable ESOP fund of USD 200 million (around INR 1,600 crore) which was before the IPO. Such a huge quantity of ESOP allocation adds the shared vision of the success through team work since the employees who were part of the business making decisions are compensated easily.
Swiggy’s IPO vs. Zomato’s Initiatives To Create Wealth Among The Employees
The history for Swiggy appears to have changed when the company underwent ESOP structured payouts in split of the capital as Swiggy has now been compared to its rival Zomato who first went public in 2021. Based in Gurugram, Zomato had configured an ESOP pool worth 7,000 during its IPO offering thereby creating a trail of wealth creation for employees of the company in the food delivery industry ever since. Zomato’s Long term stock awards have been effectively utilized since then by the company through further rewards and allocation of ESOP distributions confirming the company’s Employee First culture.
Swiggy’s Future Outlook and Investor Expectations.
Now that Swiggy has made its debut at the stock exchange, there is a tough battle and market share that is controlled by Zomato and several other players. This leads us to conclude that Swiggy’s performance post its IPO will be crucial for its investors. According to the projections made, the company is established to grow its portfolio across the board while working on becoming profitable and increasing efficiencies. Like most recent ones, Swiggy is expected to brace the Indian market from one of its largest IPOs, and this market journey is likely to get attention from both retail and institutional investors.
The IPO of this food app has created a new benchmark for the generation of wealth under India’s startup paradigm and would certainly fetch good money to the employees as well and calls to the attention for the company’s capabilities in the forthcoming market. In the coming years as it expands, manages funds and shows interest in the growth of employees, Swiggy’s path in the stock exchange will be beneficial for many not only investors but also to the business experts.
