CarTrade Tech, a leading auto marketplace, has announced the expansion of its employee stock option plan (ESOP) pool by allocating an additional 28,000 stock options to its employees.
The company disclosed in an exchange filing that its board has approved the allocation of shares to eligible employees following the exercise of vested options under ESOP 2014 and ESOP 2015.
The newly allotted shares, based on the stock’s last closing price, are valued at INR 2.34 crore.
Under ESOP 2014, 26,000 shares have been allocated at an exercise price of INR 34 per share, while the remaining 2,000 shares are allotted under ESOP 2015 at an exercise price of INR 472 per share.
As a result of this allotment, CarTrade’s paid-up share capital has increased to INR 47.23 crore from the previous INR 47.20 crore.
This expansion follows a significant allotment in April, where CarTrade set aside an additional 3.04 lakh equity shares under its ESOP schemes.
Founded in 2009 by Vinay Sanghi and Rajan Mehra, CarTrade has established itself as a key player in the online automotive marketplace, offering products and value added services across various vehicle types.
Its portfolio includes renowned brands like CarWale, BikeWale, CarTradeExchange, Shriram Automall, Adroit Auto, and Autobiz. The company also provides technology solutions for OEMs and dealers, facilitating the buying and selling of new and used vehicles.
Competing with industry giants such as CarDekho, Droom, and CARS24, CarTrade reported a 43% year-on-year increase in profit after tax to INR 25 crore for Q4 FY24.
The company also saw its operating revenue surge by 51.5% YoY to INR 145.3 crore during the same period.
The use of ESOPs has become a popular strategy among companies and startups to attract and retain talent.
Recently, several tech companies have followed suit, including fintech giant Paytm, which allotted 2.81 lakh shares, and other notable companies like Delhivery and Tracxn, have also made similar ESOP allotments in the past week.
