Zomato Ltd has announced the approval of nearly 12 million stock options for eligible employees, totaling 11,997,768 shares under its employee stock ownership plans (ESOPs). The announcement was made in an exchange filing on Wednesday, October 2, 2024.
With Zomato’s shares closing at ₹275.20 on the Bombay Stock Exchange (BSE) during the last trading session on Friday, the overall value of the ESOP scheme stands at approximately ₹330.17 crore.
Of the total stock options, 11,997,652 will be granted under the ‘ESOP 2021’ scheme, while 116 will fall under the ‘ESOP 2014’ scheme, collectively branded as the “Foodie Bay Employee Stock Option Plan.” ESOPs serve as both compensation and incentives for employees, as their performance directly influences the company’s market value.
The stock options have a face value of ₹1 each and can be exercised within 10 years from the date of vesting or 12 years from the date of listing, whichever comes later. Notably, there will be no lock-in period for these options.
Previously, Zomato approved the granting of 40,739,330 stock options in July and an additional 1,982,980 options in August, encompassing 3,517,051 equity shares, according to earlier exchange filings. This move comes as Bengaluru-based rival Swiggy prepares for an Initial Public Offering (IPO) initially valued at ₹3,750 crore, which shareholders have now approved to extend to ₹5,000 crore. Together, Zomato and Swiggy dominate India’s online food delivery market.
As of the end of the trading session on Friday, October 4, 2024, Zomato shares closed at ₹275.20, marking a gain of 2.38% or 6.40 points. However, the exchange filing was made on October 2 at 12:02 PM IST, coinciding with market closure for Gandhi Jayanti. On Thursday, October 4, Zomato shares closed at ₹269, reflecting a decline of 1.88% or 5.15 points.
