2.61 Cr Equity Shares Are Allotted by Swiggy Under ESOP Plans

2.61 Cr equity shares have been distributed by listed foodtech giant Swiggy through its different employee stock option (ESOP) plans. Swiggy announced in an exchange filing on January 25 that the nominating and compensation committee had authorised the distribution of 2,61,93,411 equity shares of the firm in response to qualified workers exercising their stock options under the Swiggy ESOP Plans 2015 and 2021. Swiggy's paid-up equity share capital rose from INR 2.23 Cr to INR 2.26 Cr after this allocation. The newly allotted shares are worth INR 1175.69 Cr, with Swiggy's shares closing 2.7% lower on the BSE at INR 448.85 each on the last trading session of January 25.
Swiggy’s ESOPs
Swiggy launched its sixth employee stock option plan (ESOP) liquidity program last year, valued at $65 million (about INR 543.5 crore), prior to its offering. In June 2018, Swiggy introduced the first ESOP program. In 2021, it then announced two ESOP liquidity programs valued between $35 and $40 million. In 2022 and 2023, the two tranches under this were finished. Recently, the firm managed by Sriharsha Majety released a new app called "SNACC," which aims to provide a 15-minute food delivery service in specific areas of Bengaluru. Zomato then introduced Bistro, a 10-minute meal delivery service.
ESOP is Getting Popular Among Startups
According to a 2024 survey of 160 companies, 78% of them offered employee stock option plans (ESOPs) to their staff, a considerable increase from 59% in 2021. This indicates that ESOPs are becoming more and more popular among startup owners. More firms are now offering ESOPs to all employees, not only senior management, according to a survey done by Saison Capital, XA Network, and Carta. Compared to one in four in 2021, one in three firms now provides these plans to all employees.
Furthermore, the median ESOP pool size grew from 9% in 2021 to 12.6% in 2024, and 90% of founders now talk about ESOPs with candidates during interviews or job offers, up from 75% in 2021. Additionally, the reasons for providing ESOPs have changed; in 2024, 40% of founders cited cost reductions, up from 28% in 2021.
The founders cited the necessity to retain people as the second most important reason for putting these plans into action, behind creating a sense of ownership and company culture. Even with this increase, fewer than 30% of founders still fully understand the complexity of ESOPs, a percentage that hasn't changed since 2021.

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