Zomato Approves 12 Million Employee Stock Options to Boost Growth and Retain Talent
This ESOP grant comes as competition heats up in the online food delivery market.
Zomato's rival, Swiggy, is preparing for an Initial Public Offering (IPO).
Zomato has approved nearly 12 million employee stock options (ESOPs). This is part of its compensation and incentive program.
The announcement was made on October 2, 2024. The goal is to reward eligible employees and motivate them to help the company grow.
Zomato has allocated a total of 11,997,768 shares for its ESOP schemes.
Out of these, 11,997,652 options are from the ESOP 2021 plan. The remaining 116 options belong to the ESOP 2014 plan. Together, they are known as the Foodie Bay Employee Stock Option Plan.
Zomato's shares closed at ₹275.20 on the Bombay Stock Exchange (BSE).
The total value of the ESOPs is about ₹330.17 crore. Each option has a face value of ₹1.
Employees can exercise these options within 10 years from the vesting date.
They can also do so within 12 years from the company's listing date, whichever is later. There is no lock-in period, giving employees flexibility to convert their options into shares.
This ESOP grant comes as competition heats up in the online food delivery market.
Zomato's rival, Swiggy, is preparing for an Initial Public Offering (IPO).
This IPO was initially valued at ₹3,750 crore but has been extended to ₹5,000 crore. Zomato and Swiggy together dominate the Indian food delivery market.
Zomato’s ESOPs are seen as a way to keep talent and boost performance.
The company aims for market leadership. This grant follows previous ESOPs of over 60 million stock options given in July and August.
