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Economic Times
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Early investors clock big gains as Swiggy makes Dalal Street debut
- Swiggy's IPO and better-than-expected stock market debut has given significant gains across the board for early backers such as Prosus, Accel, Elevation Capital and SoftBank, which has emerged as one of the largest liquidity events for risk investors in India.
- Prosus' stake in Swiggy is valued at nearly Rs 26,507 crore, while SoftBank is sitting on $1 billion of value for its $450 million invested in Swiggy as of its close of trade on Wednesday.
- Venture capital firm Accel holds a 4% stake which is valued at Rs 4,310 crore, while Elevation Capital has a 2.63% stake valued at Rs 2,816 crore.
- Swiggy CEO Sriharsha Majety’s current stake in the company is worth Rs 5,381 crore, followed by other cofounders Nandan Reddy and Rahul Jaimini with Rs 1,705.3 crore and Rs 1,108.3 crore, respectively.
- Swiggy's biggest shareholder, South African and Dutch technology group Prosus, first backed the Bengaluru-based firm in 2017, deploying $1.3bn into the company across eight tranches, and now holds a 25% stake, down from around 31% that it held previously.
- The company, which has deployed $8 billion in Indian startups, had to trim its shareholding to avoid being termed a ‘promoter’ as per Sebi rules.
- According to a report, Swiggy’s listing is poised to unlock Rs 9,000 crore worth of Esops, catapulting nearly 500 employees of Swiggy into the ‘crorepati’ league.
- Swiggy’s market capitalisation stood at Rs 1,02,062 crore (about $12.3 billion) at the end of the first day of trading, post the IPO.
- Swiggy’s early investors also sold stocks worth Rs 6,400 crore in the offer-for-sale (OFS), while the listing premium has further strengthened the total value of their remaining ownership.
- Prosus' president and chief investment officer, Ervin Tu, confirmed that the company will continue to hold its position in Swiggy and that there is no rush to exit.
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