A Bengaluru civil court has temporarily stopped Swiggy from selling or placing any claims on over 200 stock options held by a former executive who was fired earlier this year. This order is in effect until the next hearing.
Arun Cyril, former executive challenges cancellation of ESOPs
According to INC42, the court order issued on November 7 stated, “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…”
Continue Exploring: Day 3: Swiggy’s IPO oversubscribed by 3.59 times, led by QIBs
Meanwhile, the court has scheduled the next hearing for November 23. The decision came after a petition by Arun Cyril, a former Swiggy executive, who was fired earlier this year. Cyril, who worked at Swiggy from 2015 to 2024, is challenging his “unlawful” termination and the cancellation of his employee stock options (ESOPs).
CCI finds Swiggy, Zomato breaching competition laws
This adds to the company’s troubles as it prepares to go public next week. In addition, Reuters reported that the Competition Commission of India (CCI) found Swiggy and its competitor Zomato guilty of breaking antitrust laws and favouring certain restaurant chains on their platforms.
Continue Exploring: CCI finds Swiggy, Zomato guilty of breaching competition laws
On November 6, the Delhi High Court issued a notice to the Competition Commission of India (CCI) and Swiggy. This was in response to a plea by the National Restaurant Association of India (NRAI), challenging their removal from a confidentiality ring set up by CCI to investigate alleged anti-competitive practices by Swiggy and Zomato.
Despite all the recent issues, Swiggy’s IPO closed today, being oversubscribed 3.59 times on the final day. The IPO received bids for 57.53 crore shares compared to 16.01 crore shares available, mainly driven by qualified institutional investors (QIBs).
Notably, the food tech giant’s IPO includes a fresh issue of shares worth ₹4,499 crore and an offer for sale of 17.5 crore shares. The price range for the public issue was set at ₹371 to ₹390 per share. Before opening the issue to the public, Swiggy raised ₹5,085 crore from anchor investors on November 5. The shares will be listed on November 13.
