Zomato has granted nearly 1.2 crore stock options to its eligible employees. These stocks are granted under the Foodie Bay Employee Stock Option Scheme 2014 (ESOP 2014) and Zomato Employee Stock Option Scheme 2021.
The announcement was made in a regulatory filing to the BSE recently. As per the filing, Zomato’s Nomination and Remuneration Committee approved the allocation of stock options through a circular resolution. Employees will have the flexibility to exercise these options within 10 years of grant or 12 years from the company’s listing. This grant applies to all options under both ESOP schemes.
Each stock option will convert into one fully-paid equity share with a face value of Re 1. Based on Zomato’s current market price of Rs 275.20 per share, the overall value of the granted options is estimated at Rs 330.17 crore.
Zomato’s stock saw a positive response on 2 October, with a 2.38 per cent rise, reflecting investor confidence in the move. Additionally, the company emphasised that this step is essential for keeping employees engaged and committed to the company’s future success.
Employee Stock Option Plans (ESOPs) are a strategic tool for aligning employees’ interests with the company’s long-term growth.
