Zomato Expands ESOP Pool With 4.17 Cr Stock Options

SUMMARY

Based on Zomato’s stock closing price of INR 216.45 per share on Wednesday, the total value of these stock options is estimated at INR 903.82 Cr

Of the total grant, the largest portion of stock options has been allocated under ESOP 2024, accounting for 3.7 Cr options

This is followed by 41.21 Lakh options under ESOP 2021 and 1,952 options under ESOP 2014

Listed fintech Zomato has expanded its employee stock option plan (ESOP) by granting 4.17 Cr stock options under its ESOP plans.

In an exchange filing, the company said, “The Nomination and Remuneration Committee of the Company (“NRC”) on January 22, 2025, has approved a total grant of 41,756,590 stock options under the Foodie Bay Employee Stock Option Plan 2014 (“ESOP 2014”), Zomato Employee Stock Option Plan 2021 (“ESOP 2021”), and Zomato Employee Stock Option Plan 2024 (“ESOP 2024”) to eligible employees.”

Of the total grant, the largest portion of stock options has been allocated under ESOP 2024, accounting for 3.7 Cr options. This is followed by 41.21 Lakh options under ESOP 2021 and 1,952 options under ESOP 2014.

As per the company, stock options granted under ESOP 2014 and ESOP 2021 can be exercised within ten years from the date of vesting or 12 years from the date of listing, whichever is later.

Meanwhile, stock options under ESOP 2024 can be exercised within ten years from the date of vesting.

A total of 5.48 Cr equity shares, with a face value of INR 1 each, are covered under the granted stock options. Each stock option can be converted into one fully paid-up equity share with a face value of INR 1.

Not to mention, ESOPs are allotted to retain top executives and attract talent globally.

Based on Zomato’s stock closing price of INR 216.45 per share on Wednesday, the total value of these stock options is estimated at INR 903.82 Cr.

Zomato has witnessed several developments related to its ESOP schemes in recent months.

Last month, Zomato allotted 47.75 Cr equity shares under various ESOPs to Foodie Bay Employees ESOP Trust. Before that in October, it expanded the pool size of its ESOP with the allotment of nearly 1.2 Cr stock options to eligible employees.

The developments comes at a time when Zomato has seen its consolidated net profit decline 57.2% to INR 59 Cr in Q3 FY25 from INR 138 Cr in the same quarter last year. Sequentially, profit tanked 66% from INR 176 Cr in Q2 FY25.