Zomato Allots ESOPs Worth Rs 2.52 Crore to Employees

• ByStartupStory     |    August 1, 2023

Food delivery giant Zomato has allotted employee stock option plans (ESOP) worth Rs 2.52 crore to select employees of the company and its subsidiaries, as per a BSE filing on Monday. The company’s Board approved the allotment of 2,52,59,179 shares having a face value of Re 1 each as fully paid-up shares. Out of this, approximately 48 lakh shares will be allotted as sweat equity to identified employees under the Zomato Employee Stock Option Plan 2018.

In a significant move last year, Zomato’s CEO, Deepinder Goyal, announced his decision to donate the proceeds from his vested employee stock options to the Zomato Future Foundation (ZFF). These ESOPs were valued at nearly Rs 700 crore according to news reports.

The ESOPs given to Deepinder Goyal in the second half of FY23 cost the company Rs 143 crore, as per the related party transactions filings. The total ESOP cost to key managerial personnel, including Chief Financial Officer Akshant Goyal and Company Secretary Sandhya Sethia, amounted to Rs 156 crore. Akshant Goyal and Sandhya Sethia received ESOPs worth Rs 13.5 crore and Rs 10 lakh, respectively.

Zomato’s revenue for the last quarter of FY23 witnessed a remarkable 70% rise, fueled by impressive growth in the restaurants supplies vertical, Hyperpure. Furthermore, losses for the same period declined to Rs 188.2 crore, marking a 47% decrease from the year-ago period.

Looking ahead, Zomato is optimistic about achieving EBITDA profitability within the next four quarters. The company is set to reveal its FY24 first-quarter performance on August 3.

Recently, Zomato initiated liquidation proceedings for its wholly-owned subsidiary, Zomato Media (ZM) Portugal, citing that it is not a material subsidiary and has no active business operations.

As of Tuesday, Zomato’s shares traded 1.25% higher at Rs 85.15 apiece.

Zomato’s commitment to rewarding its employees with ESOPs reflects its dedication to recognizing their contributions and fostering a culture of ownership and growth within the organization.

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