Zomato Ltd has approved the granting of approximately 12 million stock options to eligible employees.
Zomato Ltd has approved the granting of approximately 12 million stock options to eligible employees. (Unsplash)
The total number of shares granted under the Employee Stock Ownership Plan (ESOP) will be 11,997,768 shares, the food delivery giant announced in an exchange filing on Wednesday, October 2, 2024.
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During the last trading session of the week on Friday, Zomato shares closed at Rs 275.20 on the Bombay Stock Exchange (BSE), taking the overall value of the ESOP scheme to Rs 330.17 crore.
Of the total, 11,997,652 options were covered by the “ESOP 2021” plan and 116 were covered by the “ESOP 2014” plan, which the company named the “Foodie Bay Employee Stock Option Plan.”
ESOP is company stock options given to employees as compensation, and since the company’s performance is influenced by the performance of the employees, it also functions as an incentive.
The term “option” here refers to an instrument that can be converted into stock whenever the holder chooses.
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The face value of options here is ₹1 each. According to the filing, the shares can be exercised within 10 years from the vesting date or 12 years from the listing date, whichever is later, and are not subject to lock-in.
According to the company’s previous exchange filings, Zomato approved granting of 40,739,330 stock options in July this year and 19,82,980 stock options including 35,17,051 shares in August. I had approved that.
The grant of employee stock options also comes as Bengaluru-based rival Swiggy is aiming for an initial public offering (IPO) worth Rs 3,750 crore, which is now worth Rs 5,000 crore to shareholders. It has been approved to expand to Rs. Zomato and Swiggy have a near duopoly in India’s online food delivery scene.
How has Zomato stock performed?
After the close of this week’s trading on Friday, October 4, 2024, Zomato Ltd shares closed at ₹275.20 on the BSE. This was an increase of 2.38% or 6.40 points.
However, the filing to the exchange was made on October 2, 2024 at 12:02 pm IST, on a day when markets were closed for Gandhi Jayanti observances.
On Thursday, October 4, 2024, Zomato stock closed at ₹269, with a loss of 1.88% or 5.15 points.
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