Zomato has allotted 47.75 crore equity shares to its employee welfare trust, Foodie Bay Employees ESOP Trust.
The shares were allotted under various employee stock option plans (ESOPs), including Zomato ESOP 2018, ESOP 2021, ESOP 2022, and ESOP 2024.
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Zomato’s new shares worth INR 13,489.3 Cr
Reportedly, the company’s board approved the issuance and allotment of the shares, which have a face value of INR 1 each. As per the stock’s last close, the newly-allotted shares are worth INR 13,489.3 crore.
With this allotment, Zomato’s issued, subscribed, and paid-up equity share capital has increased to INR 965.03 crore from INR 917.28 crore earlier. Several new-age tech companies, including Delhivery, Nykaa, ixigo, and ideaForge, have issued ESOPs this year to reward their employees.
Zomato raises INR 8,500 Cr
Meanwhile, Zomato’s ESOP announcement comes just days after the company raised INR 8,500 crore through a qualified institutions placement, its first major fundraise since its 2021 IPO. According to CEO Deepinder Goyal, Zomato needed to enhance its cash balance “given the competitive landscape and the much larger scale of our business today.”
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Additionally, the expansion of Blinkit, Zomato’s quick commerce arm, is expected to impact the company’s financial health in the near term. In its Q2 FY25 performance, Zomato reported a 30% decline in its net profit to INR 176 crore, primarily due to increased expenses on Blinkit’s expansion. Operating revenue grew 14% quarter-on-quarter to INR 4,799 crore, driven by strong performance across its food delivery and quick commerce verticals.
