Zomato, the popular food delivery platform, has announced the grant of nearly 12 million stock options under its employee stock option plans (ESOPs). In an official filing on October 2, 2024, the company revealed that a total of 11,997,768 stock options have been granted to eligible employees under its ESOP 2014 and ESOP 2021 schemes.
These stock options, valued at INR 330.17 crore based on Zomato’s current share price of INR 275.2, aim to boost employee motivation by offering long-term wealth-creation opportunities. The company’s Nomination and Remuneration Committee approved the grant, which allows employees to exercise their stock options within 10 years from the vesting date or 12 years from the company’s listing date.
Out of the total options granted, the majority (11,997,652) belong to the ESOP 2021 plan, with only 116 options from the older ESOP 2014 plan, also known as the Foodie Bay Employee Stock Option Plan. Each option can be converted into one fully paid-up equity share with a face value of INR 1.
This announcement comes as Zomato’s key competitor, Swiggy, prepares for a major initial public offering (IPO), further intensifying the competition between the two giants in India’s food delivery market.
On Friday, Zomato shares closed at INR 275.2, up 2.4 percent on the BSE, while the benchmark Sensex fell 0.98 percent. Its shares have surged 121 percent in 2024 to date and 330 percent over the past two years, with the company currently holding a market capitalsation of INR 2,43,122 crore.
In Q1 FY25, Zomato reported significant year-on-year growth in its consolidated net profit to INR 253 crore. Revenue from operations in the reporting period increased 74 percent YoY to INR 4,206 crore.
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