Delhivery Limited, a leading logistics firm, has announced expansion of its employee stock option plan (ESOP) pool, allocating 6,49,547 equity shares to incentivize and retain its employees.
The Stakeholders’ Relationship Committee approved this allotment on July 8, 2024, as detailed in an official exchange filing.
Breakdown of the Allotment:
- Delhivery ESOP 2012: 3,42,347 shares
- ESOP II 2020: 1,87,500 shares
- ESOP III 2020: 1,19,700 shares
This latest allotment increases Delhivery’s paid-up share capital from INR 73.85 crore to INR 73.91 crore.
Based on Tuesday’s opening stock price, the value of the newly allotted ESOPs is approximately INR 25.4 crore.
Series of Recent ESOP Expansions
This allotment marks the third expansion of Delhivery’s ESOP pool in just over a month. Earlier in July, the company allocated 36,525 stock options to the ESOP 2012 scheme. Prior to that, in June, Delhivery had increased the ESOP pool by 11.06 lakh stock options.
Financial Performance and Strategic Initiatives
Despite these strategic efforts to enhance employee engagement, Delhivery has faced financial challenges.
The company reported a consolidated net loss of INR 69 crore for Q4 of FY24, a significant shift from the net profit of INR 11.7 crore reported in the preceding quarter.
Additionally, revenue from operations declined by 5% quarter-on-quarter to INR 2,076 crore, primarily due to a decrease in express parcel and cross-border service volumes.
In line with its strategic growth initiatives, Delhivery has also announced plans to set up a wholly-owned subsidiary, Delhivery Robotics India.
This new venture aims to manufacture drones and provide freight air transportation services, reflecting Delhivery’s commitment to innovation and expansion in logistics solutions.
Industry Trends
The trend of expanding ESOP pools is not unique to Delhivery.
Several other new-age tech companies have also announced significant ESOP allocations recently.
For instance, Paytm allocated over 2.81 lakh ESOPs yesterday and Nykaa allotted over 4.73 lakh ESOPs last month.
These moves highlight a broader industry trend of using ESOPs as a tool to attract, motivate, and retain top talent in a competitive market.
