Swiggy is launching its largest Employee Stock Ownership Plan (ESOP) liquidity programme to date. The programme will enable employees to sell a portion of their company stock options.
This is the fifth iteration of the programme that will allow Swiggy employees to collectively sell shares worth $65 million. Furthermore, over 3,200 employees across all departments and levels at Swiggy are eligible to participate in this programme.
This initiative comes ahead of Swiggy’s planned initial public offering (IPO). Pre-IPO ESOP liquidity programmes are common among companies aiming to provide liquidity to employees before the shares become tradable post-IPO, due to SEBI regulations that impose a one-year lock-in period on options post-IPO.
Swiggy has conducted five such programmes in the past, repurchasing shares worth over Rs 1,000 crore from its employees. Several other companies, including Meesho, Purplle, Urban Company, and Flipkart, have conducted similar share buyback programmes recently. Ola also launched a $150 million programme before its 2020 IPO.
This move by Swiggy not only aims to reward and retain employees but also prepares them for potential financial gains as the company moves towards its public listing.
