Zomato allots ESOPs worth Rs 2.5 Cr

Food delivery firm Zomato has allotted employee stock option plans (ESOP) worth Rs 2.52 crore to select employees of the company and its subsidiaries, it said in a BSE filing on Monday.

The listed company's Board approved the allotment of 2,52,59,179 shares having a face value of Re 1 each as fully paid-up shares, the filing said. Of this, about 48 lakh shares will be allotted as sweat equity to identified employees of the company under the Zomato Employee Stock Option Plan 2018.

Last year, CEO Deepinder Goyal said he will donate the proceeds of his recently vested employee stock options to Zomato Future Foundation (ZFF). The ESOPs were worth nearly Rs 700 crore according to news reports.

ESOPs given to Goyal in the second half of FY23 cost the company Rs 143 crore, according to related party transactions filings by the company. The total ESOP cost to key managerial personnel including chief financial officer Akshant Goyal and company secretary Sandhya Sethia cost Rs 156 crore. Akshant and Sethia received ESOP worth Rs 13.5 crore and Rs 10 lakh each.

The food delivery firm's revenue in the last quarter of FY23 rose 70% helped by impressive growth in the restaurants supplies vertical Hyperpure. Losses for the period declined to Rs 188.2 crore, down 47% from the year-ago period.

Zomato said it expects to achieve EBITDA profitability in the next four quarters.

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Zomato will reveal its FY24 first-quarter performance on Aug 3.

Last week, the company began liquidation proceedings for its wholly-owned subsidiary, Zomato Media (ZM) Portugal, stating it is not a material subsidiary and has no active business operations.

Zomato's shares traded 1.25% higher at Rs 85.15 apiece on Tuesday.