Swiggy Awards USD 270 Mn in ESOPs to CEO and Top Executives Ahead of IPO Other key leaders, 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, were also awarded additional shares under the ESOP programme.
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IPO-bound food-tech brand Swiggy has granted employee stock ownership plans (ESOPs) worth USD 270 million (approximately INR 2,240 crore) to its co-founder and group CEO, Sriharsha Majety, along with other top executives, as revealed in the company's updated draft red herring prospectus (DRHP). This move comes in preparation for Swiggy's highly anticipated listing later this year, a milestone that could result in significant wealth creation for the leadership team.
Other key leaders, 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, were also awarded additional shares under the ESOP programme. These equity awards are designed to reward the leadership for their role in scaling the company and driving its market success.
According to reports by The Arc, Majety's ownership in Swiggy, which stood at around 6.23% when the draft papers were filed, has increased by an additional 2.3% due to the ESOP allocation. Other senior executives are similarly set to increase their stakes in the company, incentivizing them to continue driving strong performance ahead of Swiggy's public debut.
The practice of offering ESOPs to top executives before an IPO is not uncommon. In 2021, Swiggy's primary competitor, Zomato, granted co-founder Deepinder Goyal an additional 4% stake in the company ahead of its own public offering. Higher ownership stakes typically motivate executives to maintain strong performance post-listing, aligning their financial interests with the company's long-term success.
Swiggy's IPO is shaping up to be one of the largest for a new-age company in India. Initially, the company planned to raise INR 10,414 crore (USD 1.25 billion), consisting of an INR 3,750 crore fresh issue and INR 6,664 crore through an offer for sale (OFS). However, during an Extraordinary General Meeting (EGM) on October 3, Swiggy's shareholders approved an increase in the primary issue size to INR 5,000 crore, allowing for an additional INR 1,250 crore if needed. The OFS component remains unchanged at INR 6,664 crore.
With this provision in place, Swiggy's IPO could potentially grow to INR 11,664 crore (USD 1.4 billion), positioning it as one of the largest public offerings by an Indian tech company, cementing Swiggy's place as a dominant player in the fast-growing food-tech market.
