Foodtech giant Zomato has allocated 10.88 crore equity shares under its multiple employee stock option plans (ESOPs) ahead of its Q3 FY24 earnings.
Zomato announced via an exchange filing that its board has sanctioned the issuance of 10,88,68,081 equity shares, each with a face value of INR 1, fully paid-up, in response to the exercise of 9,21,33,979 vested options by identified employees of the company and its subsidiaries.
The foodtech giant’s Employee Stock Ownership Plan (ESOP) for 2021 saw the highest allotment with over 9 crore shares, whereas its ESOP for 2018 received an allotment of 1.67 crore equity shares.
After the allotment, the company’s issued, subscribed, and paid-up equity share capital would increase to nearly INR 882 Cr, up from its previous level of INR 871.1 Cr.
Zomato’s stock surged by up to 4% in intraday trading on Thursday, reaching INR 146.25 on the BSE. As of 1:30 PM IST, the company’s shares were trading 3% higher at INR 144.9 on the exchange.
In Q2 FY24, the company recorded its second consecutive profitable quarter, posting a net profit of INR 36 Cr. Meanwhile, its operating income for the quarter reached INR 2,848 Cr.
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Ahead of the Q3 earnings, brokerages like HSBC, Goldman Sachs, and Jefferies have recently raised their price targets for Zomato, citing the strong growth in its food delivery and quick commerce businesses.
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Infact, the Street’s focus is currently heavily centered on Zomato’s Blinkit business.
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