Zomato, the popular food delivery firm, has recently made an exciting announcement. According to a BSE filing on Monday, the company has granted employee stock option plans (ESOP) worth INR 2.52 crore to select employees within the organization and its subsidiaries. This move is expected to further incentivize and reward dedicated employees for their contributions to the company’s success.
As per the filing, the Board of the listed company has given the green light for the allotment of 2,52,59,179 shares, each with a face value of INR 1, as fully paid-up shares. Out of this total, approximately 48 lakh shares will be granted as sweat equity to specifically identified employees under the Zomato Employee Stock Option Plan 2018. This strategic move aims to acknowledge and incentivize the efforts of these employees and align their interests with the company’s growth and success.
According to news reports, CEO Deepinder Goyal announced last year that he would contribute the proceeds from his recently vested employee stock options to the Zomato Future Foundation (ZFF). The value of these ESOPs was estimated at approximately INR 700 crore.
Based on the company’s related party transactions filings, it was disclosed that the Employee Stock Options (ESOPs) granted to CEO Deepinder Goyal during the second half of FY23 amounted to INR 143 crore. Additionally, the total ESOP expense for key managerial personnel, including Chief Financial Officer Akshant Goyal and Company Secretary Sandhya Sethia, totaled INR 156 crore. Akshant Goyal and Sandhya Sethia were granted ESOPs valued at INR 13.5 crore and INR 10 lakh, respectively.
Read More: Zomato incurs INR 143 Crore expense in H2FY23 for CEO Deepinder Goyal’s ESOPs
During the last quarter of FY23, the food delivery firm experienced a significant revenue increase of 70%, primarily driven by impressive growth in the Hyperpure vertical, which deals with restaurant supplies. Furthermore, the company’s losses for the same period reduced to INR 188.2 crore, marking a decline of 47% compared to the corresponding period in the previous year.
Zomato has expressed its anticipation of achieving EBITDA profitability within the coming four quarters.
Zomato is scheduled to disclose its performance for the first quarter of FY24 on August 3rd.
The company initiated liquidation proceedings for its wholly-owned subsidiary, Zomato Media (ZM) Portugal, last week, as it deemed the subsidiary not to be material and confirmed it had no active business operations.
Read More: Zomato’s shares soar as company initiates liquidation of Portugal-based subsidiary
On Tuesday, Zomato’s shares recorded a 1.25% increase, reaching INR 85.15 per share during trading.
