ArdorComm Media Group

Zomato offers shares to employees for one rupee

-By ArdorComm News Network

The online food aggregator Zomato has given its employees and employees of its subsidiaries 4,65,51,600 equity shares with a face value of Rs 1 each. From its employee stock option plan, or ESOP pool, the Company distributed stock options totalling more than Rs 63 lakh in 2018.

It distributed shares valued at Rs 4.02 crore three years later, in 2021. As a result, the Company has so far allocated shares totalling Rs. 792.02 crore. Zomato shares are under selling pressure as a result of promoters, employees, founders, and others connected to the company selling off their shares now that the one-year lock-in period has ended.

The lock-in period for over 613 crore shares, or about 78% of the Company, has ended just one year after the IPO. Investor uncertainty resulted from the share prices of Zomato falling as low as Rs 40.60 on July 27. Investors now face more issues as a result of the Company’s recent acquisition of Blinkit.

The shares did make a quick comeback and are currently trading at more than Rs 43. At an exercise price of one rupee, Zomato has distributed Rs 4.65 crore worth of equity shares from its ESOP (employee stock option plan) pool.

The Company has told the stock exchange that its board of directors has approved the distribution to workers “upon exercise of vested options” of “4,65,51,600 equity shares having a face value of Rs 1 each, as fully paid-up.”

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