Zomato allots shares worth Rs 200 crore to staff at Re 1 face value

NEW DELHI: On-line meals supply platform Zomato, which goes via its worst part at Dalal Road, has allotted almost 4.66 crore shares to its staff from its worker inventory possibility plan (ESOP) pool on the face worth of Rs 1.
The board of administrators authorised the allotment of 4,65,51,600 fairness shares to staff upon train of vested inventory choices, in accordance with its submitting with the inventory exchanges.
Your entire allotment is value round Rs 200 crore (Zomaro’s share worth was hovering round Rs 43 on Wednesday).
“We want to inform you that the nomination and remuneration committee of the board of administrators of the corporate at its assembly held on July 25, 2022, has authorised the allotment of 4,65,51,600 fairness shares having a face worth of Re 1 every, as totally paid-up, to recognized staff of the corporate and its subsidiaries upon train of vested choices,” the corporate stated in its observe.
The meals supply platform’s complete share allotment to the workers stands at 792.02 crore shares.
In a 2018 scheme, Zomato alloted 63.5 lakh ESOPs whereas in 2021, it gave 4.02 crore shares to staff.
The inventory allotment got here as Zomato’s share worth tanked over 11 per cent on Monday and greater than 7 per cent to hit an all-time low of Rs 43.05 on Tuesday, wiping out greater than Rs 89,000 crore.
World brokerage and analysis agency Jefferies has stated it’s time to purchase because the inventory generally is a good entry level for long-term buyers.
In a observe, Jefferies stated that now could be the time for long-term buyers to Purchase Zomato inventory with a goal worth of Rs 100.
“Zomato administration has additionally accelerated its journey in the direction of higher unit economics and is now eyeing a break-even within the meals supply enterprise within the foreseeable future,” the observe learn.
The net meals supply big’s inventory has fallen greater than 69 per cent this 12 months.
Zomato shares fell to their lowest ranges for the reason that IPO was launched at Rs 76 per share because the one 12 months lock-in interval for buyers thought-about insiders has ended.