Zomato is a food tech startup that expanded its Employee Stock Option Plan by offering its employees more than 35.17 lakh stock options ahead of its first quarter earnings for FY25. These newly allocated shares are worth around Rs 81.4 crore. The e-commerce platform was launched to help customers search nearby restaurants and order online food delivery. Zomato provides its food-related services through its online website and mobile application.
The board passed a resolution to allot 35,17,051 equity shares at a face value of Rs 1 per share as fully paid up upon the exercise of 19,82,980 vested options for Zomato’s employees. The startup will grant 15.24 lakh stock options under the 2018 Zomato employee stock option plans and the 11.07 lakh equity shares will be granted under the Zomato Employee stock option plan 2022. The company mentioned in a stock exchange filing that the granted stock options should be used within 12 years from the date of listing or 10 years from the date of vesting.
The development came just when the company was focused on increasing its presence in India. Zomato reported a 2 percent increase in its stock during the intraday trading session today to Rs 234 per share on the BSE. The firm has been launching new services to double its market presence. Last month, Zomato introduced a new addition to the application that enables customers to delete their history. Earlier, this month, the company acquired Paytm’s ticketing and movie business to strengthen its business. The food-tech startup plans to expand its network and strengthen its position in the food delivery Market.
Zomato reported its first PAT to be around Rs 2 crore in Q1 FY24. The firm announced that its total net profit stood at Rs 175 crore for the fourth quarter in the same duration. This food-tech startup plans to solidify its position in the Indian food delivery segment. Zomato competes with other companies including Swiggy, and Eatsure. Deepinder Goyal, the CEO of Zomato said that the company got the approval from the majority of the board members to expand its ESOP pool size.
Conclusion:
Zomato announced its plans to grant 3.15 lakh employee stock option plans and increase the pool size. The board approved the allocation of 25.7 lakh equity shares at a face value of Rs 1 per share providing 19,82,980 vested options to its employees. These newly allocated shares are worth Rs 81.4 crore. The company granted these shares ahead of Q1 FY25 earnings to gain new employees and improve its productivity. The company allocated 15.24 lakh stock options under the Zomato ESOP 2018 scheme and 11.07 lakh stock options under its ESOP 2022 plan. The e-commerce platforms provide information about nearby restaurants and let you order food online. These granted stock options should be used by the employees within 10 years from the date of vesting or 12 years from the date of listing.
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