Zomato, the popular food delivery company, has granted 11,997,768 shares under its employee stock ownership plans (ESOPs). This announcement was made on October 2, 2024. With Zomato’s shares priced at ₹275.20 on the Bombay Stock Exchange (BSE) during the last trading session of the week, the total value of these ESOPs is ₹330.17 crore.
Out of the total shares, 11,997,652 are part of the “ESOP 2021” plan, while 116 options belong to the older “ESOP 2014” plan, also known as the “Foodie Bay Employee Stock Option Plan.”
ESOPs are a way for companies to reward employees by giving them the option to buy company shares. This motivates employees, as the company’s success and stock price growth can directly benefit them. In this case, employees can convert these options into shares within 10 years from the date they are vested or within 12 years from the company’s listing, whichever comes later. There is no lock-in period for these options.
Earlier this year, Zomato approved 40,739,330 stock options in July and 19,82,980 stock options in August, covering 35,17,051 equity shares.
This latest ESOP grant comes as Zomato’s competitor, Swiggy, is getting ready for its initial public offering (IPO), which is expected to raise ₹5,000 crore.
Zomato’s stock performance:
On October 4, 2024, Zomato’s share price closed at ₹275.20, up by 2.38% for the week. However, on October 3, Zomato’s shares had fallen slightly to ₹269, down by 1.88%. The ESOP-related announcement was made earlier in the week on October 2, when the markets were closed for Gandhi Jayanti.
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