Ahead of its Q1FY25 earnings, Zomato had allotted more than 3.5 million employee stock options, which translated to shares worth around Rs 81 crore.
Food delivery major Zomato said on Friday approved the grant of 12 million stock options to eligible employees, according to regulatory filings. The company has granted 116 stock options under the Foodie Bay ESOP 2014 scheme and 11.9 million stock options under the Zomato ESOP 2021 scheme.
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Shares of Zomato closed at Rs 274.65 apiece on the NSE on Friday, 2% higher than the last session, which means the freshly granted ESOPs are worth nearly Rs 327 crore. Each of these stock options is convertible into one fully paid-up equity share having a face value of Rs 1 each. The equity shares allotted would not be subject to lock-in, the filing said.
Stock options granted can be exercised within 10 years from the date of vesting of options, or 12 years from the date of listing, whichever is later.
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Ahead of its Q1FY25 earnings, Zomato had allotted more than 3.5 million employee stock options, which translated to shares worth around Rs 81 crore. Prior to that, the company had received shareholders’ nod to create a new employee stock option pool of 182 million shares, which were worth over Rs 3,800 crore.
The company’s ESOP charges stood at 31% of the total employee cost in FY24 at Rs 515 crore, which is lower compared to Rs 878 crore in FY22. “ESOPs are a critical lever to drive ownership in our organisation — particularly in businesses like ours, which are in early stages of market development across all of our verticals,” CEO Deepinder Goyal had said in a Q1 shareholder letter.
Zomato’s new ESOPs come at the heels of its rival Swiggy filing for an IPO, where it has shareholders’ nod to raise up to Rs 5,000 crore and an offer-for-sale component worth Rs 6,664 crore.
