Foodtech giant Zomato has increased the size of its employee stock option plan (ESOP) by allocating nearly 1.2 crore stock options to eligible employees.
In͏͏ an͏͏ exchange͏͏ filing͏͏ on͏͏ Wednesday͏͏ (October͏͏ 2),͏͏ the͏͏ company͏͏ announced͏͏ that͏͏ its͏͏ board͏͏ has͏͏ approved͏͏ the͏͏ allocation͏͏ of͏͏ 1,19,97,768͏͏ stock͏͏ options͏͏ under͏͏ various͏͏ ESOP͏͏ schemes.
Details͏͏ of͏͏ ESOP Allocation:
The͏͏ food͏͏ delivery͏͏ and͏͏ quick͏͏ commerce͏͏ giant͏͏ has͏͏ allocated͏͏ 116͏͏ stock͏͏ options͏͏ under͏͏ the͏͏ Foodie͏͏ Bay͏͏ ESOP͏͏ 2014͏͏ scheme͏͏ and͏͏ 1.19͏͏ crore͏͏ stock͏͏ options͏͏ under͏͏ the͏͏ Zomato͏͏ ESOP͏͏ 2021͏͏ scheme.
Each͏͏ stock͏͏ option͏͏ can͏͏ be͏͏ converted͏͏ into͏͏ one͏͏ fully͏͏ paid-up͏͏ equity͏͏ share͏͏ with͏͏ a͏͏ face͏͏ value͏͏ of͏͏ INR͏͏ 1͏͏ and͏͏ may͏͏ be͏͏ exercised͏͏ within͏͏ either͏͏ 10͏͏ years͏͏ from͏͏ the͏͏ date͏͏ of͏͏ option͏͏ vesting͏͏ or͏͏ 12͏͏ years͏͏ from͏͏ Zomato’s͏͏ public͏͏ listing,͏͏ whichever͏͏ is͏͏ later,͏͏ as͏͏ per͏͏ its͏͏ ESOP͏͏ schemes.
The͏͏ filing͏͏ indicated͏͏ that͏͏ the͏͏ equity͏͏ shares͏͏ allotted͏͏ upon͏͏ exercising͏͏ the͏͏ stock͏͏ options͏͏ will͏͏ not͏͏ be͏͏ subject͏͏ to͏͏ a͏͏ lock-in͏͏ period.
Zomato͏͏ shares͏͏ opened͏͏ today’s͏͏ trading͏͏ session͏͏ at͏͏ INR͏͏ 274.15͏͏ apiece͏͏ on͏͏ the͏͏ BSE.͏͏ Based͏͏ on͏͏ the͏͏ stock’s͏͏ last͏͏ opening͏͏ price,͏͏ the͏͏ newly͏͏ allotted͏͏ shares͏͏ have͏͏ a͏͏ total͏͏ value͏͏ of͏͏ INR͏͏ 328.91͏͏ crore.
This͏͏ isn’t͏͏ the͏͏ first͏͏ instance͏͏ of͏͏ Zomato͏͏ introducing͏͏ new͏͏ ESOPs͏͏ this͏͏ year,͏͏ as͏͏ the͏͏ company͏͏ aims͏͏ to͏͏ retain͏͏ its͏͏ top͏͏ executives͏͏ and͏͏ draw͏͏ talent͏͏ from͏͏ global͏͏ startups.͏͏ In͏͏ August,͏͏ Zomato͏͏ allocated͏͏ more͏͏ than͏͏ 35.17͏͏ lakh͏͏ equity͏͏ shares.͏͏ Previously,͏͏ the͏͏ foodtech͏͏ major͏͏ announced͏͏ that͏͏ it͏͏ had͏͏ secured͏͏ shareholder͏͏ approval͏͏ to͏͏ implement͏͏ a͏͏ new͏͏ employee͏͏ stock͏͏ option͏͏ plan,͏͏ Zomato͏͏ ESOP͏͏ 2024,͏͏ which͏͏ will͏͏ provide͏͏ 18.26͏͏ crore͏͏ employee͏͏ stock͏͏ options.
Continue͏͏ Exploring:͏͏ Zomato issues͏͏ 38.72͏͏ lakh͏͏ equity͏͏ shares͏͏ under͏͏ ESOP plans
Focus͏͏ on͏͏ Profit͏͏ Margins͏͏ and͏͏ Revenue͏͏ Growth:
These͏͏ developments͏͏ come͏͏ as͏͏ Zomato͏͏ continues͏͏ to͏͏ enhance͏͏ its͏͏ profit͏͏ margins,͏͏ driven͏͏ by͏͏ robust͏͏ growth͏͏ in͏͏ its͏͏ business,͏͏ particularly͏͏ within͏͏ its͏͏ quick͏͏ commerce͏͏ vertical,͏͏ Blinkit.
Zomato’s͏͏ consolidated͏͏ net͏͏ profit͏͏ skyrocketed͏͏ year-on-year͏͏ (YoY)͏͏ to͏͏ INR͏͏ 253͏͏ crore͏͏ in͏͏ Q1͏͏ FY25,͏͏ while͏͏ revenue͏͏ from͏͏ operations͏͏ surged͏͏ 74%͏͏ YoY͏͏ to͏͏ INR͏͏ 4,206͏͏ crore.
Continue͏͏ Exploring:͏͏ Zomato’s͏͏ net͏͏ profit͏͏ jumps͏͏ multi-fold͏͏ to͏͏ INR͏͏ 253͏͏ Cr͏͏ in͏͏ Q1,͏͏ marks͏͏ fifth͏͏ consecutive͏͏ profitable͏͏ quarter
The͏͏ company͏͏ is͏͏ looking͏͏ to͏͏ boost͏͏ its͏͏ revenue͏͏ by͏͏ focusing͏͏ on͏͏ its͏͏ going-out͏͏ business.͏͏ As͏͏ part͏͏ of͏͏ this͏͏ strategy,͏͏ Zomato͏͏ has͏͏ acquired͏͏ Paytm’s͏͏ event͏͏ and͏͏ movie͏͏ ticketing͏͏ subsidiaries͏͏ and͏͏ introduced͏͏ the͏͏ ‘Book͏͏ Now,͏͏ Sell͏͏ Anytime’͏͏ feature͏͏ for͏͏ tickets͏͏ purchased͏͏ for͏͏ any͏͏ live͏͏ event͏͏ on͏͏ the͏͏ Zomato͏͏ app.
Zomato͏͏ has͏͏ been͏͏ introducing͏͏ new͏͏ features͏͏ to͏͏ attract͏͏ customers͏͏ while͏͏ phasing͏͏ out͏͏ offerings͏͏ that͏͏ haven’t͏͏ been͏͏ successful.͏͏ Recently,͏͏ it͏͏ launched͏͏ ‘Zomato͏͏ for͏͏ Enterprise’͏͏ (ZFE)͏͏ to͏͏ streamline͏͏ food͏͏ expense͏͏ management͏͏ for͏͏ orders͏͏ placed͏͏ by͏͏ corporates͏͏ and͏͏ their͏͏ registered͏͏ employees.
However,͏͏ the͏͏ foodtech͏͏ giant͏͏ is͏͏ dealing͏͏ with͏͏ increasing͏͏ tax͏͏ issues.͏͏ Last͏͏ month,͏͏ West͏͏ Bengal͏͏ GST͏͏ authorities͏͏ imposed͏͏ a͏͏ fresh͏͏ goods͏͏ and͏͏ services͏͏ tax͏͏ (GST)͏͏ demand͏͏ and͏͏ penalty͏͏ exceeding͏͏ INR͏͏ 17.70͏͏ crore.͏͏ In͏͏ August,͏͏ Zomato͏͏ was͏͏ also͏͏ fined͏͏ INR͏͏ 4.59͏͏ crore͏͏ by͏͏ the͏͏ authorities͏͏ in͏͏ Tamil͏͏ Nadu͏͏ and͏͏ West͏͏ Bengal͏͏ for͏͏ GST͏͏ violations.
Zomato͏͏ shares͏͏ were͏͏ trading͏͏ 1.6%͏͏ lower͏͏ at͏͏ INR͏͏ 269.75͏͏ apiece͏͏ on͏͏ the͏͏ BSE͏͏ at͏͏ 1:58͏͏ PM͏͏ today.
