Swiggy Awards $271 Mn In Stock Options To Top Execs Ahead Of IPO

Bengaluru-based food and grocery delivery giant Swiggy has granted stock options worth USD 271 million to its founders and senior management as part of its latest employee stock ownership plan (ESOP) rolled out in April 2024, according to the company’s pre-listing prospectus. 

The bulk of these stock options, nearly USD 200 million, was awarded to founder and group CEO Sriharsha Majety, positioning him to increase his stake in the company ahead of its upcoming initial public offering (IPO).

Majety, who currently holds a 6.23 per cent stake in Swiggy on a fully diluted basis, could see an additional 2.2-2.5 per cennt added to his ownership through these stock grants. He will also be selling shares worth USD 7.5 million as part of the IPO's offer for sale (OFS) component. In addition to the new stock options, Majety and cofounder Nandan Reddy had sold shares in Swiggy through secondary transactions between July and September, with Majety selling USD 23 million worth of shares and Reddy offloading USD 12 million.

Other key executives at Swiggy, including Reddy, Phani Kishan Addepalli (chief growth officer), CFO Rahul Bothra, CTO Madhusudhan Rao, food marketplace CEO Rohit Kapoor, and newly appointed CEO of Swiggy Instamart Amitesh Jha, were also beneficiaries of the ESOP plan. Jha, who joined Swiggy in September from Flipkart, was granted stock options valued at USD 13.3 million, while Kapoor, who has been with the company since August 2022, received options worth USD 9.8 million.

Swiggy’s chief growth and marketing officer Ashwath Swaminathan, who stepped down from his role at the end of September, was awarded stock options totaling USD 5.7 million before his departure. The ESOPs have a vesting period ranging from one to eight years, and their value will fluctuate based on Swiggy’s stock performance post-IPO.

Swiggy confidentially filed for its USD 1.25 billion IPO with the Securities and Exchange Board of India (SEBI) in April, using the regulator's confidential filing route. The fresh issue component, initially set at USD 450 million, could be increased to USD 600 million. The offering will also include shares sold by early investors, including Prosus, Norwest Venture Partners, Elevation Capital, Accel, Coatue, and Alpha Wave Global.