Zomato Limited, a leading player in the food delivery and restaurant discovery space, has announced grant of 35.17 lakh employee stock options (ESOPs) yesterday as part of its ongoing Employee Stock Option Plans (ESOPs).
This move underscores the company’s commitment to recognizing and rewarding the efforts of its employees while signaling confidence in its future growth.
In a regulatory filing with the Bombay Stock Exchange (BSE), Zomato revealed that the board of directors had approved the allotment of 35,17,051 equity shares, each with a face value of INR 1, to employees and subsidiaries.
This allocation includes stock options from three different ESOP schemes:
- 15.34 lakh options from the Zomato ESOP 2018 plan
- 8.75 lakh options from the Zomato ESOP 2021 plan
- 11.07 lakh options from the Zomato ESOP 2022 plan
The new shares, which will be issued upon the exercise of 19,82,980 vested options, represent an approximate value of INR 81.4 crore based on the stock’s opening price of INR 231.45 on the BSE yesterday.
This latest increment in the ESOP pool raises Zomato’s subscribed and paid-up equity share capital to INR 883.05 crore from INR 882.69 crore.
Strategic Initiatives and Recent Developments
The ESOP grant comes at a pivotal time for Zomato, which has recently intensified its efforts to strengthen its market presence and enhance its service offerings.
Among the company’s latest initiatives, Zomato has announced information about a new “District” app and has introduced a loyalty program for select restaurant partners.
In a move to support its delivery partners, Zomato has also started facilitating income tax return (ITR) filings to help them secure refunds on their TDS deductions.
These measures demonstrate Zomato’s broader commitment to improving the overall experience for both its customers and its employees.
Financial Performance and Future Outlook
Zomato’s financial performance has surged significantly, with profit after tax (PAT) reaching INR 253 crore in Q1 FY25, a dramatic increase from INR 2 crore in Q1 FY24. On a quarter-on-quarter basis, PAT grew nearly 45% from INR 175 crore.
Operating revenue also saw a substantial rise, jumping over 74% to INR 4,206 crore in Q1 FY25 from INR 2,416 crore in the same quarter last year.
As Zomato continues to expand and enhance its market presence, this ESOP grant aligns with its strategy to attract and retain top talent, while reinforcing its commitment to growth and innovation in the foodtech industry.
