Zomato Allots 10.88 Cr ESOPs Ahead Of Q3 Earnings

SUMMARY

Zomato said in an exchange filing today that its board has approved the allotment of 10,88,68,081 equity shares having a face value of INR 1

Following the allotment, the issued, subscribed, and paid-up equity share capital of the company would be increased to almost INR 882 Cr from INR 871.1 Cr earlier

Ahead of Q3 earnings, brokerages including HSBC, Goldman Sachs and Jefferies have recently increased their price targets on Zomato and a major focus remains on its Blinkit business

Ahead of its Q3 FY24 earnings, foodtech major Zomato on Thursday (February 8) alloted 10.88 Cr equity shares under its multiple employee stock option plans (ESOPs).

Zomato said in an exchange filing that its board has “approved the allotment of 10,88,68,081 equity shares having a face value of INR 1 (Indian rupee one) each, as fully paid-up upon exercise of 9,21,33,979 vested options to identified employees of the company and its subsidiaries.”

The foodtech giant’s ESOP 2021 received the highest amount of allotment of more than 9 Cr shares while its ESOP 2018 has seen an allotment of 1.67 Cr equity shares.

Following the allotment, the issued, subscribed and paid-up equity share capital of the company would be increased to almost INR 882 Cr from INR 871.1 Cr earlier.

Shares of Zomato jumped as much as 4% during the intraday trading to INR 146.25 on the BSE on Thursday. By 1.30 PM IST, its shares were trading 3% higher at INR 144.9 on the exchange.

The company reported its second profitable quarter in Q2 FY24 with a net profit of INR 36 Cr while its operating income stood at INR 2,848 Cr in the quarter.

Ahead of Q3 earnings, brokerages including HSBC, Goldman Sachs and Jefferies have recently increased their price targets on Zomato on the back of the strong growth in its food delivery and quick commerce businesses.

In fact, the Street currently remains highly focussed on Zomato’s Blinkit business.

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