Zomato Grants 40M ESOPs, Valued at Nearly Rs 890 Cr
- ByStartupStory | July 12, 2024
Foodtech giant Zomato has approved Employee Stock Options (ESOPs) grants of 40 million stocks under its 2014 and 2021 plans, valued at Rs 892.19 crore based on an opening price of Rs 219 apiece.
In a regulatory filing, the company stated, “Stock Options granted shall be capable of being exercised within ten years from the date of vesting of options or twelve years from the date of Listing, whichever is later.”
The approval comes amid recent developments where Zomato faced shareholder dissent over its ESOP expansion plan, narrowly securing majority approval despite significant opposition.
Zomato’s quarterly earnings report disclosed plans for an ESOP pool of 18.26 crore employee stock options, amounting to approximately 2% of its fully diluted outstanding share capital. At current market rates, this ESOP is valued close to Rs 4,000 crore.
Addressing strategic decisions, Zomato clarified in a separate filing its intention not to pursue lending and credit operations, withdrawing its application with the Reserve Bank of India for NBFC certification through its finance arm.
The company is also focusing on expanding its stepping-out segments, recently recalling senior executives to bolster these verticals. Additionally, Zomato has been in advanced discussions with Paytm regarding the acquisition of the latter’s events and ticketing business.
“We are committed to enhancing shareholder value through strategic allocation of resources and focusing on growth areas that align with our long-term vision,” remarked a spokesperson from Zomato.
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