Foodtech giant Zomato has granted approximately 12 million stock options through its employee stock option plans (ESOPs). In͏͏ an͏͏ official͏͏ filing͏͏ dated͏͏ October͏͏ 2,͏͏ 2024,͏͏ the͏͏ company͏͏ revealed͏͏ that͏͏ a͏͏ total͏͏ of͏͏ 11,997,768͏͏ stock͏͏ options͏͏ have͏͏ been͏͏ allocated͏͏ to͏͏ eligible͏͏ employees͏͏ under͏͏ its͏͏ ESOP͏͏ 2014͏͏ and͏͏ ESOP͏͏ 2021͏͏ programs.
These͏͏ stock͏͏ options,͏͏ valued͏͏ at͏͏ INR͏͏ 330.17͏͏ crore͏͏ based͏͏ on͏͏ Zomato’s͏͏ current͏͏ share͏͏ price͏͏ of͏͏ INR͏͏ 275.2,͏͏ are͏͏ intended͏͏ to͏͏ enhance͏͏ employee͏͏ motivation͏͏ by͏͏ providing͏͏ avenues͏͏ for͏͏ long-term͏͏ wealth͏͏ creation.͏͏ Approved͏͏ by͏͏ the͏͏ company’s͏͏ Nomination͏͏ and͏͏ Remuneration͏͏ Committee,͏͏ the͏͏ grant͏͏ allows͏͏ employees͏͏ to͏͏ exercise͏͏ their͏͏ stock͏͏ options͏͏ within͏͏ 10͏͏ years͏͏ from͏͏ the͏͏ vesting͏͏ date͏͏ or͏͏ within͏͏ 12͏͏ years͏͏ from͏͏ the͏͏ company’s͏͏ listing͏͏ date.
Majority͏͏ of͏͏ Options͏͏ Allocated͏͏ Under͏͏ ESOP 2021͏͏ Plan:
Of͏͏ the͏͏ total͏͏ options͏͏ granted,͏͏ the͏͏ majority—11,997,652—are͏͏ part͏͏ of͏͏ the͏͏ ESOP͏͏ 2021͏͏ plan,͏͏ while͏͏ just͏͏ 116͏͏ options͏͏ come͏͏ from͏͏ the͏͏ older͏͏ ESOP͏͏ 2014͏͏ plan,͏͏ referred͏͏ to͏͏ as͏͏ the͏͏ Foodie͏͏ Bay͏͏ Employee͏͏ Stock͏͏ Option͏͏ Plan.͏͏ Each͏͏ option͏͏ can͏͏ be͏͏ converted͏͏ into͏͏ one͏͏ fully͏͏ paid-up͏͏ equity͏͏ share͏͏ with͏͏ a͏͏ face͏͏ value͏͏ of͏͏ INR͏͏ 1.
Continue͏͏ Exploring:͏͏ Zomato expands͏͏ ESOP pool,͏͏ allocates͏͏ 1.2͏͏ Cr͏͏ stock͏͏ options͏͏ to͏͏ employees
This͏͏ comes͏͏ as͏͏ Zomato’s͏͏ key͏͏ rival,͏͏ Swiggy,͏͏ is͏͏ gearing͏͏ up͏͏ for͏͏ a͏͏ significant͏͏ initial͏͏ public͏͏ offering͏͏ (IPO),͏͏ intensifying͏͏ the͏͏ competition͏͏ between͏͏ the͏͏ two͏͏ major͏͏ players͏͏ in͏͏ India’s͏͏ food͏͏ delivery͏͏ sector.
On͏͏ Friday,͏͏ Zomato͏͏ shares͏͏ closed͏͏ at͏͏ INR͏͏ 275.2,͏͏ marking͏͏ a͏͏ 2.4͏͏ percent͏͏ increase͏͏ on͏͏ the͏͏ BSE,͏͏ while͏͏ the͏͏ benchmark͏͏ Sensex͏͏ declined͏͏ by͏͏ 0.98͏͏ percent.͏͏ Year-to-date,͏͏ the͏͏ company’s͏͏ shares͏͏ have͏͏ risen͏͏ by͏͏ 121͏͏ percent͏͏ and͏͏ have͏͏ increased͏͏ by͏͏ 330͏͏ percent͏͏ over͏͏ the͏͏ past͏͏ two͏͏ years,͏͏ resulting͏͏ in͏͏ a͏͏ market͏͏ capitalization͏͏ of͏͏ INR͏͏ 2,43,122͏͏ crore.
Q1͏͏ FY25͏͏ Profit͏͏ and͏͏ Revenue͏͏ Growth:
In͏͏ Q1͏͏ FY25,͏͏ Zomato͏͏ experienced͏͏ substantial͏͏ year-on-year͏͏ growth͏͏ in͏͏ its͏͏ consolidated͏͏ net͏͏ profit,͏͏ reaching͏͏ INR͏͏ 253͏͏ crore.͏͏ During͏͏ the͏͏ same͏͏ period,͏͏ revenue͏͏ from͏͏ operations͏͏ rose͏͏ by͏͏ 74͏͏ percent͏͏ year-on-year͏͏ to͏͏ INR͏͏ 4,206͏͏ crore.
