Here’s how many Swiggy employees will become crorepatis today, but what’s the IPO like? Details inside

Swiggy is set to give hundreds of employees a big payday as it hits the stock market today, with its shares listing on the BSE and NSE at 10 am. About 500 staffers are expected to pocket Rs 1 crore each, while about Rs 9,000 crore will be distributed among 5,000 employees – a reward for years of service and growth contributions, according to a Moneycontrol report.

The IPO, one of India’s largest in recent years, underlines Swiggy’s scale and marks an important moment for the Indian startup ecosystem.

Despite strong demand from institutional investors, analysts are cautious about Swiggy’s debut. The gray market premium (GMP) reflects tepid sentiment, with shares trading just Re 1 above the issue price of Rs 390.

Shivani Nyati of Swastika Investmart notes that while Swiggy’s IPO attracted a subscription of 3.59 times, current market volatility and valuation challenges make it a risky bet.

“While there is interest, the company’s continued losses and market conditions mean a cautious approach is best,” Nyati said.

Prashanth Tapse, senior analyst at Mehta Equities, expects the quote to be “flat to slightly negative”, citing Swiggy’s high competition and negative cash flow model.

He noted: “The low demand from retail and NII investors reflects concerns about intense competition and negative market sentiment.” Analysts have recommended that investors with a high risk tolerance and a long-term view should consider the stock, while others might take a more reserved approach.

For Swiggy’s employees, today’s listing is a major wealth creation event, putting the company on par with others like Flipkart, which has similarly rewarded employees with significant ESOP payouts. In a rare move in the Indian startup world, the IPO allows early employees who helped scale the company to benefit significantly.

As trading begins, Swiggy’s IPO performance will be closely watched, indicating its position in the food delivery and high-speed trading sectors.