Zomato, the foodtech giant, has recently allotted nearly 10.65 crore equity shares as part of its multiple employee stock option plans (ESOPs).
According to an official exchange filing, the company announced that its board has granted approval for the allocation of 10,64,69,448 fully paid-up shares under the Zomato Employee Stock Option Plan 2018, Zomato Employee Stock Option Plan 2021, and Zomato Employee Stock Option Plan 2022.
The majority of the shares were allocated under Zomato’s 2021 ESOP plan, while 30.95 lakh shares were allotted under the 2018 and 2022 plans. This development occurred a mere three months following the allocation of 2.52 crore shares to its employees in August 2023.
Upon the allotment of these shares, Zomato’s subscribed and paid-up equity share capital will rise from INR 860.44 Cr to INR 871.09 Cr.
The declaration about ESOPs coincided with Zomato unveiling its financial reports for the quarter concluding in September 2023. The company witnessed an increase in share-based expenses, climbing to INR 132 Cr in Q2 FY24 from INR 100 Cr in the previous quarter. Nevertheless, this figure experienced a marginal decrease from INR 137 Cr in Q2 FY23.
Meanwhile, Zomato marked its second consecutive quarter of profitability by announcing a profit after tax (PAT) of INR 36 Cr in Q2 FY24. This follows its debut profitable quarter in Q1 FY24 when it reported a PAT of INR 2 Cr. In contrast, during Q2 FY23, the company had incurred a net loss of INR 251 Cr.
Read More: Zomato reports remarkable surge in profit, achieving second consecutive profitable quarter in FY24
Also Read: Zomato turns profitable in Q1 FY24, reports INR 2 Cr consolidated PAT
During the reviewed quarter, Zomato experienced a surge in its operating income, escalating from INR 1,661 Cr in the corresponding quarter of the previous year to INR 2,848 Cr.
The foodtech giant witnessed a significant milestone as its quick commerce subsidiary, Blinkit, achieved a positive contribution for the entire quarter, marking a notable achievement since its acquisition in June 2022. Blinkit’s contribution margin, calculated as a percentage of the gross order value (GOV) in the overall business, showed a remarkable improvement, transitioning from -7.3% in Q2 FY23 to +1.3% for the quarter ending on September 30, 2023.
In the meantime, Zomato’s shares concluded the trading session on Friday with an 8.3% gain, reaching INR 116.40 on the BSE. This marked the first time in approximately 22 months that the stock closed above its listing price on the stock exchanges.