Zomato allots shares value Rs 200 crore to workers at Re 1 face worth – Occasions of India

NEW DELHI: On-line meals supply platform Zomato, which goes by means of its worst part at Dalal Avenue, has allotted almost 4.66 crore shares to its staff from its worker inventory choice plan (ESOP) pool on the face worth of Rs 1.
The board of administrators authorized the allotment of 4,65,51,600 fairness shares to staff upon train of vested inventory choices, based on 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 authorized the allotment of 4,65,51,600 fairness shares having a face worth of Re 1 every, as absolutely paid-up, to recognized staff of the corporate and its subsidiaries upon train of vested choices,” the corporate mentioned in its be aware.
The meals supply platform’s whole 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.
International brokerage and analysis agency Jefferies has mentioned it’s time to purchase because the inventory could be a good entry level for long-term traders.
In a be aware, Jefferies mentioned that now could be the time for long-term traders 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 be aware learn.
The net meals supply large’s inventory has fallen greater than 69 per cent this yr.
Zomato shares fell to their lowest ranges because the IPO was launched at Rs 76 per share because the one yr lock-in interval for traders thought of insiders has ended.