Online food delivery platform Zomato has secured shareholders’ approval to establish a new employee stock option pool (ESOP) comprising 18.2 crore shares, according to an exchange filing.
Approximately 75 percent of investors voted in favour of the resolution, while 25 percent opposed it.
At the current market price of roughly Rs 208 per share, the value of 18.2 crore shares is approximately Rs 3,800 crore.
The opposing votes predominantly came from Zomato’s institutional shareholders, with about 32 percent casting their votes against the proposal.
Zomato’s notable institutional investors include Fidelity Investments, Temasek, CPPIB, and Vanguard.
In the company’s fourth quarter (Q4) earnings and shareholders’ letter, Chief Financial Officer Akshant Goyal emphasized the significance of the ESOP pool.
“ESOPs are important to help build a culture of long-term thinking and innovation and create a ‘founder mindset’ amongst senior employees, which ultimately drives the right outcomes for long-term shareholder value creation,” Goyal stated.
The approval comes as Zomato continues to expand its business operations.
Last month, the company invested Rs 300 crore in its quick commerce arm, Blinkit, projecting this segment to surpass its core food delivery business.
Additionally, Zomato plans to invest Rs 100 crore in Zomato Entertainment, its events division that specializes in curating and selling tickets for concerts, parties, and festivals.
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