Food tech giant Zomato has received shareholder approval for a new employee stock option plan (ESOP) worth $458 million, reflecting the company’s commitment to rewarding its employees and driving future growth.
The board of Zomato secured the nod to grant 18,26,27,402 ESOP options under the new plan, increasing the total ESOP pool to 31,07,80,714 options. Regulatory filings accessed through the National Stock Exchange show the newly added ESOPs are valued at Rs 3,800 crore (approximately $458 million), bringing the total value of the ESOP pool to Rs 6,609 crore (approximately $796 million), as estimated by Fintrackr.
This strategic move coincided with Zomato’s shares reaching an all-time high of Rs 209.84, boosting the company’s market cap to Rs 1,84,060 crore (approximately $22.17 billion).
In a separate announcement, Zomato disclosed it has voluntarily withdrawn its application with the Reserve Bank of India for an NBFC licence, signaling its exit from the lending and credit business.
Earlier this week, Zomato faced a GST demand notice of Rs 9.5 crore, marking the second such notice after a Rs 184 crore penalty in April.
Despite these challenges, Zomato has demonstrated robust growth in FY24. Revenue from operations surged 71% year-on-year to Rs 12,114 crore, up from Rs 7,079 crore in FY22. The company also reported a profit of Rs 351 crore in FY24, a significant turnaround from a loss of Rs 971 crore in FY23.
Zomato’s proactive steps, including the introduction of the substantial ESOP plan and strategic business decisions, underscore its focus on sustainable growth and employee engagement.
