Swiggy is making its stock market debut today, and what is amazing is the rarely seen level of wealth creation that will result. This initial public offering or IPO will turn about 5,000 of the company’s employees extremely wealthy. In fact, they are set to become ‘crorepatis’ as this IPO will give them Rs 9,000 crores, as per a Money Control report—a reward for being part of and witness to the food delivery giant growing from a small firm to such a profitable company.
The employee stock option (ESOP) payout is probably the largest amongst Indian startups till date. The company’s shares will begin trading today. Last week, Swiggy’s $1.3 billion share sale was subscribed over three times in the primary market, during 6 to 8 November. The Rs 11,327-crore IPO fully subscribed on the final day of the share sale and ended with 3.59 times subscription. The shares were reportedly priced at the rate of Rs 371 to Rs 390 per unit. The food-delivery company has reportedly managed to receive over Rs 5,000 crores from investors.
It plans to use the capital raised from the fresh issue to promote business, advance tech, and improve cloud infrastructure and marketing.
The online food-delivery market has grown in leaps and bounds over the last six years. From Rs 112 billion in 2018, it reached Rs 640 billion in 2023.
This is proof of the growing potential of quick commerce and the success of the digital economy.
