Swiggy is set to deliver a big payday to hundreds of employees today as it hits the stock market, with shares listing at 10 a.m. on the BSE and NSE. Approximately 500 staffers are expected to pocket Rs 1 crore each, while around Rs 9,000 crore will be distributed among 5,000 employees—rewarding years of service and growth contributions, according to a Moneycontrol report.
The IPO, one of India’s largest in recent years, highlights Swiggy’s scale and marks a significant moment for India’s startup ecosystem.
Despite strong demand from institutional investors, analysts are cautious about Swiggy’s debut. The grey market premium (GMP) reflects a lukewarm sentiment, with shares trading only Re 1 above the Rs 390 issue price.
Shivani Nyati from Swastika Investmart notes that while Swiggy’s IPO saw a 3.59-times subscription, current market volatility and valuation challenges make it a risky choice.
“Although there is interest, the company’s ongoing losses and market conditions mean a cautious approach is best,” Nyati said.
Prashanth Tapse, senior analyst at Mehta Equities, expects the listing to be “flat to slightly negative,” citing Swiggy’s high competition and negative cash flow model.
He remarked, “Low demand from retail and NII investors reflects concerns over high competition and negative market sentiment.” Analysts have recommended that investors with a high-risk tolerance and long-term view may consider the stock, while others might take a more reserved approach.
For Swiggy’s employees, today’s listing is a major wealth-creation event, aligning the company with others like Flipkart, which similarly rewarded employees with significant ESOP payouts. In a rare move in India’s startup world, the IPO allows early employees who helped scale the company to benefit substantially.
As trading begins, Swiggy’s IPO performance will be closely watched, signaling its position in the high-stakes food delivery and quick commerce sectors.