Zomato grants 40M ESOPs worth nearly Rs 890 Cr

Foodtech giant Zomato on Thursday approved Employee Stock Options (ESOPs) grants of 40 million stocks under its 2014 and 2021 plans. 

According to the opening price of Rs 219 apiece, the grant covers Rs 892.19 crore worth of Zomato stocks. 

The company will grant 123 options under the 2014 Foodie Bay Employee Stock Option Plan and 40 million shares under the Zomato Employee Stock Option Plan 2021. 

“Stock Options granted shall be capable of being exercised within ten years from the date of vesting of options or twelve years from the date of Listing, whichever is later” read the exchange filing. 

The Deepinder Goyal-led company, at the beginning of July, said it managed to scrape by majority approval for its ESOP expansion plan after nearly a fourth of investors voted against the motion.

Zomato, in its quarterly earnings, had said it will undertake an ESOP pool of 18.26 crore employee stock options—about 2% of its outstanding share capital on a fully diluted basis. At the opening price today, this ESOP of 18.26 crore shares would be worth nearly Rs 4,000 crore. 

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In a separate regulatory filing in July, the company said it does not plan on foraying into the lending and credit business. Through its finance arm, it was voluntarily withdrawing its application with the Reserve Bank of India (RBI) to get a certificate of registration to undertake the business of a non-banking financial company.

Zomato is also betting on its stepping-out segments and has reportedly called back two of its senior executives to revamp the vertical. Just weeks before this, the food delivery platform announced it was in advanced discussions with Paytm for the latter’s events and ticketing business.