Zomato grants 12 million stock options worth Rs 330 crore under ESOP

This initiative by Zomato reinforces the company's "commitment to empowering" its employees with long-term wealth creation opportunities

Food delivery platform Zomato has granted 11,997,768 stock options to eligible employees under its Foodie Bay Employee Stock Option Plan 2014 (ESOP 2014) and the Zomato Employee Stock Option Plan 2021 (ESOP 2021). The announcement came in a BSE filing on October 2, 2024.

The company's Nomination and Remuneration Committee approved the grant via a circular resolution, as confirmed in the filing. "Stock options granted shall be capable of being exercised within (a) 10 years from the date of vesting of options, or (b) 12 years from the date of listing, whichever is later under ESOP 2014 and ESOP 2021," Zomato stated.

Each stock option under these plans is convertible into one fully paid-up equity share with a face value of Rs 1. The total stock options granted amount to Rs 330.17 crore at Zomato’s current share price of Rs 275.2, which surged by 2.38 percent on October 2, reflecting a positive market reaction to the company's move.

This initiative by Zomato reinforces the company's "commitment to empowering" its employees with long-term wealth creation opportunities, as ESOPs serve as a significant tool to align the interests of employees with the company’s growth trajectory. It is a crucial step in ensuring the team remains motivated and invested in the company’s success, the statement said.

With these stock options, Zomato continues to emphasize the value it places on its workforce, driving home its belief in collective growth while building a strong foundation for future business development.