Food technology giant led by Deepinder Goyal Zomato has announced a major expansion of its employee stock ownership plan (ESOP), allocating nearly 1.2 crore stock options worth around Rs 328 crore to its eligible employees.
According to a regulatory filing filed on October 2, 2024, the company’s board of directors approved the grant of 1,19,97,768 share options under two schemes – Foodie Bay ESOP 2014 and Zomato ESOP 2021.
Each share option is convertible into one fully paid equity share of face value of Rs 1 each and can be exercised within 10 years of vesting of the options or 12 years after public listing of Zomato, which happens later according to their ESOP schemes.
In particular, shares to be allocated after the exercise of stock options will not be subject to lock-up, the document shows.
Continuous efforts to retain and attract talent
The move is not the first for Zomato AESOP expansion this year. As of August 2024, the company had already allotted more than 35 lakh shares.
Earlier this year, Zomato also received shareholder approval to introduce the Zomato ESOP 2024 plan, under which 18.26 crore share options will be made available to employees. This development is part of Zomato’s broader strategy to retain top executives and attract talent, especially from global startups.
With competition from its industry rival. drinkZomato, which is gearing up for its IPO, is positioning itself to offer competitive compensation packages.
Zomato financial performance in 2024
The ESOP group expansion comes after Zomato’s strong financial performance in Q1FY25. The company reported a consolidated net profit of Rs 253 crore, marking significant year-on-year (YoY) growth.
Revenue also rose 74% year-on-year to Rs 4,206 crore, largely driven by the growth of its fast commerce vertical, Blinkit.
On October 4, 2024, Zomato shares were trading at Rs 276, giving the company a market capitalization of around Rs 2.44 lakh crore (approximately $29 billion).
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