Zomato Ltd has approved the granting of nearly 12 million stock options to eligible employees.

The total number of shares granted as employee stock ownership plans (ESOPs) would be 11,997,768, the food delivery giant announced in an exchange filing on Wednesday, October 02, 2024.

Also Read: Paytm’s CTO gets a new role called ‘AI Fellow,’ Deependra Singh Rathore replaces him

With Zomato’s shares closing at ₹275.20 on the Bombay stock Exchange (BSE) during the week’s last trading session on Friday, the entire ESOPs scheme becomes worth ₹330.17 crore.

Out of the total, 11,997,652 options would come under the ‘ESOP 2021’ scheme while 116 would come under the ‘ESOP 2014’ scheme, with the company naming them as “Foodie Bay Employee Stock Option Plan.”

ESOPs refer to company stock options given to employees as compensation, which also act as incentive since the performance of the company driven by the performance of its employees, also gets reflected in the market value of the shares.

‘Option’ here refers to the instrument which can be converted into an equity share whenever the holder opts to do so.

Also Read: Mobile phones, electronics and consumer durables top online shopping charts: Report

The face value of the options here are ₹1 each. They can be exercised within 10 years from the date of vesting them or 12 years from the date of listing, whichever comes later, and they won’t be subject to to lock-in, according to the filing.

Zomato had previously approved granting 40,739,330 stock options during this year’s July and 19,82,980 stock options encompassing 35,17,051 equity shares in August, according to the company’s previous exchange filings.

The employee stock option grants also come in the backdrop of Bengaluru-based rival Swiggy going for an Initial Public Offering (IPO) worth ₹3,750 crore initially, but with shareholders now approving to extend it to ₹5,000 crore. Zomato and Swiggy together hold a near duopoly in India’s online food delivery scene.

How did Zomato’s shares perform?

Zomato Ltd shares closed at ₹275.20 on the BSE after the week’s trading session ended on Friday, October 04, 2024. This was a gain of 2.38% or 6.40 points.

The exchange filing however, came on October 02, 2024, at 12:02 pm IST, when markets were closed on the occasion of Gandhi Jayanti.

On Thursday, October 04, 2024, Zomato shares closed at ₹269, which was 1.88% or 5.15 points in the red.

Also Read: JPMorgan client who lost $50 million fortune amid dementia is denied trial

Stay updated with the…

See more