Swiggy, a leading food delivery platform and a direct competitor of Zomato, made its much-awaited stock market debut on November 13. This IPO is not only attractive for investors, but it is also going to change the fortunes of about 500 employees, who will now become crorepatis. In this article, we will tell you how Swiggy’s IPO is going to open the door to wealth for employees, and what are the special things behind this IPO.
Swiggy IPO: An unforgettable debut
Swiggy listed on the National Stock Exchange (NSE) on November 13 at ₹420, garnering a 7.7% premium over the issue price of ₹390. Similarly, Swiggy shares opened at ₹412 on the Bombay Stock Exchange (BSE), up 5.64% from the issue price. This listing is not only a good sign for investors but has also brought a big opportunity for employees.
ESOPs: Way to wealth for employees
With Swiggy’s IPO, an important aspect has come to the fore for employees – ESOPs (Employee Stock Option Plans). According to Swiggy’s Draft Red Herring Prospectus (DRHP), 231 million ESOPs were issued, with a total value of ₹9,046.65 crores, based on the IPO’s upper price band of ₹390 per share.
What will employees get through ESOPs?
Swiggy employees are getting big benefits through ESOPs. Among these, there will be about 500 employees whose wealth will now turn into crores. This is a historic moment for Swiggy, as it will bring a big change in the financial condition of the employees.
Plan to make employees crorepatis with ESOPs
Swiggy aims to provide its employees with an opportunity to build wealth. For this, Swiggy has implemented three major ESOP plans:
- Swiggy Employee Stock Option Plan 2015
- Swiggy Employee Stock Option Plan 2021
- Swiggy Employee Stock Option Plan 2024
Through these plans, Swiggy has opened new avenues of wealth creation for its employees.
SEBI exemption: More opportunities for employees
Swiggy has taken another step this time. It has obtained an exemption from the Securities and Exchange Board of India (SEBI), according to which employees can sell their shares within just one month after the IPO. Normally, employees are not allowed to sell their shares for a year, but due to this exemption, employees will soon have an opportunity to redeem their assets.
Competition between Swiggy and Zomato
Swiggy’s IPO is quite comparable to that of its competitor Zomato. Zomato launched an IPO of ₹9,375 crore in July 2021 and resulted in the creation of 18 dollar millionaires. At the same time, Swiggy’s IPO has also brought a big financial opportunity for its employees, making it a benchmark for both companies.
Future of employees: Opportunity to become a millionaire
Swiggy’s IPO has benefited about 5,000 employees. Out of these, 500 employees will be such, whose shares will now be in crores. This move is not only to empower Swiggy’s employees financially, but it also gives employees dedication and motivation towards the company.
Employee Provident Fund: Not only money but also recognition
Swiggy has given its employees a unique opportunity through ESOPs. ESOPs are not only empowering employees financially, but it is also giving them a stake and identity in the company. This motivates employees even more, which increases the efficiency and performance of the company.
Swiggy’s IPO can also bring big changes like Flipkart and Paytm’s IPO
Swiggy’s IPO can have the same impact as Flipkart and Paytm’s IPO did. Flipkart’s ESOP buybacks touched the figure of $1.5 billion. Paytm’s IPO made 350 employees millionaires. Now after Swiggy’s IPO, employees are likely to get benefits.
Some important things related to ESOPs
Under ESOPs, employees get certain rights, which can become a source of wealth for them:
- ** Increase in share price **: After the IPO, the increase in the price of shares can increase the wealth of the employees.
- Fast sale of shares: Employees can sell shares quickly due to SEBI’s exemption.
- Share in the company’s growth: Employees can now actively contribute to the company’s growth.
Status of shares after IPO
Swiggy’s shares are stable in the market, but along with this there can be big benefits for the employees. However, due to increased liquidity, the price of the shares can fluctuate, due to which investors have to be cautious.
Future of Swiggy: Will it get more growth?
Swiggy’s future looks bright. With its IPO and the steps taken for the employees, it is expected that Swiggy will achieve even greater success in the future. Along with benefiting its employees, it is also creating a strong foundation for the company.
Summary
Swiggy’s IPO is not only beneficial for investors, but through this the employees of the company are also being empowered financially. Through this, Swiggy has taken its work style and employee welfare to new heights.Swiggy employees are getting an opportunity to become crorepatis, making it a historic IPO.
FAQs
1. What is Swiggy IPO?
Swiggy’s IPO is a public offering of the company’s shares, through which Swiggy has debuted in the stock market.
2. What does ESOPs mean?
ESOPs means Employee Stock Option Plan, in which employees get the right to buy shares of the company.
3. Are employees getting an opportunity to become crorepatis through Swiggy’s IPO?
Yes, the wealth of about 500 employees can turn into crores through Swiggy’s IPO.
4. What benefits will employees get from SEBI’s exemption?
Due to SEBI’s exemption, employees can sell their shares in just one month after the IPO.
5. How is Swiggy’s IPO different from Zomato’s IPO?
Swiggy’s IPO is focusing more on employee welfare, while Zomato’s IPO was mainly for investors.