Swiggy, the food and grocery delivery service preparing for its initial public offering (IPO), has granted employee stock options (Esops) worth USD 271 million to its founder, Sriharsha Majety, and other top executives, according to the company's pre-listing prospectus. This new stock-based compensation plan, introduced in April, allocated nearly USD 200 million of the total to Majety, who serves as the group's chief executive officer (CEO).
The remaining stock options were distributed among co-founders Nandan Reddy and Phani Kishan Addepalli, Chief Financial Officer Rahul Bothra, Madhusudhan Rao, food marketplace chief executive officer Rohit Kapoor, and newly appointed Swiggy Instamart CEO Amitesh Jha.
With this grant, Majety, who currently holds a 6.23 per cent stake in the company on a fully diluted basis, could see his ownership increase by approximately 2.2-2.5 per cent. He plans to sell USD 7.5 million worth of shares through the IPO's offer for sale (OFS) component. Between July and September, both Majety and Reddy sold shares in Swiggy via secondary transactions, with Majety's sales totalling around USD 23 million and Reddy's reaching USD 12 million.
Jha, who joined Swiggy in September from Flipkart, received options valued at USD 13.3 million, while Kapoor, who has been with the company since August 2022, was awarded options worth USD 9.8 million. Additionally, Ashwath Swaminathan received stock options totalling USD 5.7 million before stepping down as chief growth and marketing officer on September 30.
The stock options granted under the Esop 2024 scheme have a vesting period ranging from one to eight years. Changes in the company's stock price following the public listing could also impact the valuation of these stock rewards.
