Zomato awards 35.17 lakh ESOPs prior to Q1 earnings announcement.

Zomato has granted 15.34 lakh stock options under Zomato ESOP 2018, 8.75 lakh options under Zomato ESOP 2021, and 11.07 lakh options under Zomato ESOP 2022. Based on the stock's opening price today, the newly allotted ESOPs would amount to shares worth approximately INR 81.4 crore. During intraday trading, the stock rose nearly 2%, reaching INR 234 per share on the BSE.

Ahead of its Q1 FY25 earnings, Zomato announced the allocation of over 35.17 lakh employee stock options (ESOPs) on August 1. The board approved the allotment of 35,17,051 equity shares with a face value of INR 1 each, issued as fully paid-up shares upon the exercise of 19,82,980 vested options by employees of the company and its subsidiaries, according to an exchange filing. 

The recent increase in its ESOP pool size has raised Zomato’s subscribed and paid-up equity share capital to INR 883.05 crore from INR 882.69 crore. Zomato's shares opened today's trading session at INR 231.45 per share on the BSE. With the stock's opening price, the new ESOPs translate to shares worth nearly INR 81.4 crore. The stock climbed nearly 2% during intraday trading to reach INR 234 per share on the BSE.

This development occurs as Zomato expands its presence in India, introducing several new services and pilots, such as an all-electric large order fleet, a ‘Pure Veg’ fleet, last-mile delivery for office workers in corporate parks, and priority deliveries in parts of Bengaluru and Mumbai. Last month, Zomato launched a feature allowing customers to delete their past orders from the app's history. Additionally, Zomato has introduced a loyalty program for select restaurants and started facilitating income tax return (ITR) filings for its delivery partners to help them receive refunds on their TDS deductions.

Zomato has been consistently improving its profitability each quarter. After posting a profit after tax (PAT) of INR 2 crore in Q1 FY24, the company's profit rose to INR 175 crore in Q4 FY24.