B’luru Court Bars Swiggy From Alienating Terminated Exec’s ESOP

The court restrained Swiggy from alienating 185.454 vested and unexercised stock options and 24 exercised stock options of a former executive till next hearing

Swiggy’s former assistant vice-president Arun Cyril challenged his “unlawful” termination from the foodtech major and consequent annulment of ESOPs

Swiggy’s IPO closed on Friday, with the public issue getting oversubscribed 3.59X on the final day

A Bengaluru civil court has temporarily restrained foodtech major Swiggy from alienating or “creating any charge” on over 200 stock options held by a former executive, who was terminated by the company earlier this year, till next hearing.

“Defendant No.1 company (Swiggy) including its directors are restrained by way of temporary injunction from creating any charge, interest or alienate 185.454 vested and unexercised stock options and 24 exercised stock options of plaintiff, till next date of hearing…,” the order passed by the court on November 7 read. 

The court has set November 23 as the next date of hearing in the matter. 

The directions came in response to a petition filed by Arun Cyril, former assistant vice-president of contact centre operations at Swiggy, earlier this year. 

In the plea, Cyril, who worked at the foodtech major for nearly a decade between 2015 and 2024, challenged his “unlawful” termination and consequent annulment of his employee stock option plans (ESOPs) by the company.

Inc42 has reached out to Swiggy for a comment on the matter. This story will be updated on receiving a response. 

This marks another trouble for the company, which is set to make its public market debut next week. Earlier today, Reuters reported that a probe by the Competition Commission of India (CCI) found Swiggy and its rival Zomato guilty of flouting antitrust laws and favouring certain restaurant chains listed on their platforms.

Not just this, the Delhi High Court on Wednesday (November 6) issued a notice to the Competition Commission of India (CCI) and Swiggy over a plea filed by the National Restaurant Association of India (NRAI), challenging the removal of the industry body from a confidentiality ring created by the watchdog to examine allegedly anti-competitive practices by Swiggy and Zomato.

Amid all these, Swiggy’s IPO closed today, with the issue getting oversubscribed 3.59X on the final day. The IPO received bids for 57.53 Cr shares as against 16.01 Cr shares on offer, led primarily by qualified institutional investors (QIBs). 

The IPO comprises a fresh issue of shares worth INR 4,499 Cr and offer for sale (OFS) of 17.5 Cr shares. Swiggy had set a price band of INR 371 to INR 390 per share for the public issue. 

Ahead of the issue opening for public subscription, Swiggy secured INR 5,085 Cr from anchor investors on November 5. Its shares are now set to list on November 13.

On the financial front, Swiggy reported a consolidated net loss of INR 611 Cr in the first quarter (Q1) of the fiscal year 2024-25 (FY25), up over 8% year-on-year (YoY). Operating revenue zoomed 35% YoY to INR 3,222.2 Cr during the quarter under review.