In a recent disclosure to the BSE exchange Zomato announced the allocation of 18.26 crore shares under its Employee Stock Option Plans (ESOP) to employees across the company and its subsidiaries.
The ESOP 2024 covers these grants, entitling one fully paid-up equity share valued at Rs 1 for every ESOP exercised.
The company detailed its plans in a filing, outlining the formulation, adoption and implementation of the Zomato Employee Stock Option Plan 2024 (ESOP 2024), pending shareholder approval. This plan considers granting 18.26 crore employee stock options to eligible employees, including those in subsidiaries and associated companies.
The company emphasised the importance of ESOPs in cultivating a culture of long-term thinking and innovation, crucial for sustained shareholder value. It further revealed the creation of an additional ESOP pool equivalent to two per cent of the existing share capital on a fully diluted basis, pending shareholder nod.
The company noted that the total ESOP cost for Q4FY24 stood at Rs 161 crore, up from Rs 122 crore in Q3FY24.The increase is attributed to the granting of ESOPs to the Blinkit executive team and senior employees. It clarified that the creation of the new ESOP pool would not directly impact the ESOP charge, emphasising that the charge is a non-cash expense realised only upon granting ESOPs to employees.
Last year in August, Zomato issued employee stock option plans (ESOP) valued at Rs 2.52 crore to certain employees of the company and its subsidiaries. The Board of Zomato lent its approval to the allocation of 2,52,59,179 fully paid-up shares with a face value of one rupee per share.
