Online food delivery platform, Zomato has allotted nearly 4.66 crore shares to its employees from its employee stock option plan (ESOP) pool at the face value of Rs 1.
The company said in its note, “We wish to inform you that the nomination and remuneration committee of the board of directors of the company at its meeting held on July 25, 2022, has approved the allotment of 4,65,51,600 equity shares having a face value of INR 1 each, as fully paid-up, to identified employees of the company and its subsidiaries upon exercise of vested options.”
“Zomato management has also accelerated its journey towards better unit economics and is now eyeing a break-even in the food delivery business in the foreseeable future,” the note read.
According to its filing with the stock exchanges, “The board of directors approved the allotment of 4,65,51,600 equity shares to employees upon exercise of vested stock options.”
The entire allotment is worth around Rs200 crore (Zomaro’s share price was hovering around Rs 43 on Wednesday).
The food delivery platform’s total share allotment to the staff stands at 792.02 crore shares. In a 2018 scheme, Zomato allotted 63.5 lakh ESOPs while in 2021. It gave 4.02 crore shares to employees.
The company has grown tremendously, both in scope and scale – and emerged as India’s most trusted brand during the pandemic. It is one of the largest hyperlocal delivery networks in the country.
The shares of Zomato, which recently completed one year on Dalal street. The company server is under pressure and is losing one-fourth of its value in a week.
Even at its lifetime lows of Rs 40.55, the entire allotment is worth Rs 188.75 crore, which was given at the face value of Re 1 each, accounting for close to Rs 4.66 crore.
There has been a free fall in the share price of the company. It is about a 98 percent discount from the latest stock lows.
Zomato represents a wide range of cultures through its diversified 5000+ team members. It has nearly 3.5 lakh+ delivery partners and the biggest collection of the finest restaurant partners.
The company is grateful that the business can provide upward social and economic movement for millions of households – of our delivery partners and restaurant staff.
