Zomato grants ESOPs to employees worth ₹330 crore
Zomato, a leading food delivery platform, has announced the allocation of almost 12 million stock options worth ₹330.17 crore, under its Employee Stock Option Plans (ESOPs). The company disclosed this information in an official filing. The primary objective of these options is to boost employee motivation as well as facilitate long-term wealth creation.
Stock options approved by Nomination and Remuneration Committee
The stock options, valued at ₹330.17 crore based on Zomato's current share price of ₹275.2, were approved by the company's Nomination and Remuneration Committee. This approval allows workers to exercise their stock options within a decade from the vesting date, or 12 years from the company's listing date. The majority of these options (11,997,652) are part of the ESOP 2021 plan with only a small fraction (116) coming from the older ESOP 2014 plan.
Zomato's stock performance and market competition
Zomato's announcement coincides with its main competitor, Swiggy, gearing up for a significant initial public offering (IPO), further intensifying the rivalry in the Indian food delivery market. On Friday, Zomato shares closed at ₹275.2, marking a 2.4% rise on the BSE while the benchmark Sensex fell by 0.98%. So far this year, its shares have seen a substantial surge of 121% and an impressive rise of 330% over the past two years.
