Zomato parent Eternal approves 74 lakh stock options worth Rs 172 crore for employees

Zomato’s parent company, Eternal, has approved a fresh grant of employee stock options covering more than 7.4 million shares, according to the company's exchange filing.

The company’s Nomination and Remuneration Committee (NRC) approved the allocation on 1 April through a circular resolution. The stock options have been issued under three schemes: the Foodie Bay Employee Stock Option Plan 2014, Zomato Employee Stock Option Plan 2021, and Zomato Employee Stock Option Plan 2024.

A total of 7,418,741 options were granted to eligible employees. Of these, 38 options fall under ESOP 2014, 1,802,224 under ESOP 2021, and 5,616,479 under ESOP 2024.

Each stock option is convertible into one fully paid-up equity share with a face value of Rs 1. In total, 7,673,303 equity shares are covered by the grant, including adjustments linked to corporate actions under the schemes.

The exercise price has been set at Rs 1 per stock option. Under ESOP 2014 and ESOP 2021, employees may exercise their options within 10 years from the date of vesting or 12 years from the date of listing, whichever is later. Under ESOP 2024, the exercise window is 10 years from vesting.

The company said the schemes also outline how stock options would be treated in circumstances such as death, permanent incapacity, resignation, termination, retirement, or abandonment. Shares issued upon exercise will not be subject to a lock-in period.

No options have yet vested, been exercised, lapsed, or altered, according to the filing.

As per the Thursday's closing share price of Rs 231.99, the newly granted ESOPs are valued at around Rs 172 crore.

In its most recent quarterly results, Eternal reported revenue from operations of Rs 16,315 crore for the third quarter of the FY2025-26 financial year, with profit standing at Rs 102 crore.