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19 Nov 2024
Swiggy, the food-tech giant preparing for a major IPO, has granted Employee Stock Ownership Plans (ESOPs) worth $270 million (around Rs 2,240 crore) to its co-founder and group CEO Sriharsha Majety, along with other top executives, ahead of its public listing expected later this year.
According to the company’s updated draft red herring prospectus (DRHP), key executives including co-founders Nandan Reddy and Phani Kishan, food marketplace CEO Rohit Kapoor, Swiggy Instamart head Amitesh Jha, CFO Rahul Bothra, HR head Girish Menon, and CTO Madhusudhan Rao have also received additional shares as part of this programme.
Majety, who held a 6.23% stake in the company at the time of filing, has been awarded an additional 2.3% ownership, boosting his share in Swiggy. Other senior executives will also see their stakes increase prior to the IPO. This approach mirrors a similar move by rival Zomato in 2021, when co-founder Deepinder Goyal was given an extra 4% stake before its own listing. The intention behind these grants is to reward top executives for scaling the company and incentivize their performance post-listing.
Swiggy is planning a large IPO, initially targeting $1.25 billion (Rs 10,414 crore), which includes a Rs 3,750-crore fresh issue and Rs 6,664 crore through an offer for sale (OFS). However, the IPO size is set to increase. Swiggy’s shareholders approved a resolution to raise the primary issue from Rs 3,750 crore to Rs 5,000 crore at an Extraordinary General Meeting on October 3, as reported by sources. The additional Rs 1,250 crore provision is intended to meet potential future funding needs. The OFS component remains unchanged at Rs 6,664 crore.
Swiggy’s public debut is now expected to be one of the largest new-age IPOs in recent years, potentially increasing from Rs 10,414 crore ($1.25 billion) to Rs 11,664 crore ($1.4 billion) if additional funds are raised.
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