Swiggy's ESOP Plan Approved, But Not Without Opposition From New Investors
Voting results for Swiggy's special resolution on ratification of the 2024 ESOP plan showed that about 66% of the total votes cast by institutional investors were against the resolution.
Swiggy Ltd.'s plan to reward its top management via a 2024 employee stock option plan received approval, albeit with pushback from the company's post-IPO investors.
In an exchange filing on Jan. 6, voting results for the company's special resolution on ratification of the 2024 ESOP plan showed that about 66% of the total votes cast by institutional investors were against the resolution, while 95% votes cast by non-institutional investors were in favour.
This meant that non-institutional investors, that hold over 85% stake in Swiggy, could push the resolution through.
The 2024 ESOP pool has 10.73 crore shares, which at a current market price of Rs 491, are worth around Rs 5,200 crore. Prior to its IPO, Swiggy had already granted 8.58 crore options under the plan, however, these have not yet vested or been exercised yet.
While it cannot be ascertained who voted how, Swiggy's institutional investors now include various mutual funds and bodies that have come in during the company's listing exercise.
In July 2024, Zomato's ESOP plan also received some pushback. The company's stock option plan for employees of the main company and its subsidiaries received approval, with 75% investors voting for it, but 25% voting against it.
