Zomato, a leading food delivery company, has given nearly 12 million stock options to its employees through its Employee Stock Option Plans (ESOPs). In an announcement on October 2, 2024, Zomato said that 11,997,768 stock options were granted under its ESOP 2014 and ESOP 2021 plans.
These stock options, valued at ₹330.17 crore based on Zomato’s current share price of ₹275.20, aim to encourage employees by offering them the chance to build long-term wealth. Zomato’s Nomination and Remuneration Committee approved the plan, allowing employees to use these options within 10 years from when they vest or 12 years from when the company was listed.
Most of the options (11,997,652) come from the ESOP 2021 plan, with 116 from the older ESOP 2014 plan, which was originally called the “Foodie Bay Employee Stock Option Plan.” Each option can be converted into one equity share with a face value of ₹1.
This news comes at a time when Zomato’s competitor, Swiggy, is getting ready for a big Initial Public Offering (IPO), increasing competition between the two companies in India’s food delivery market.
On Friday, Zomato’s stock closed at ₹275.20, rising 2.4% on the Bombay Stock Exchange (BSE), while the Sensex dropped by 0.98%. Zomato’s share price has increased by 121% in 2024 and by 330% over the past two years. The company now has a market value of ₹2,43,122 crore.
In the first quarter of the financial year 2025, Zomato reported strong growth with a net profit of ₹253 crore, a significant year-on-year increase. Its revenue from operations also grew by 74% compared to the previous year, reaching ₹4,206 crore.
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