Investors reacted enthusiastically to Zomato's first public offering. The meal delivery startup's initial public offering (IPO) was more than 38 times oversubscribed, with bids totaling Rs 2.13 lakh crore. Zomato's senior executives are expected to accumulate millions as the online meal ordering company prepares to go public.
The Rs 9,375-crore initial public offering of the Ant Financial-backed startup was 40.38 times oversubscribed. It sold shares for Rs 76 each.
According to the red herring prospectus, co-founder Deepinder Goyal has the most employee stock options at Rs 2,800 crore at that price. Zomato is co-owned by Goyal, who controls more than 5% of the company.
With Rs 628 crore in options, Ankit Kwatra, the founder of the Feeding India non-profit that Zomato purchased, comes in second. Mohit Gupta, Gaurav Gupta, and Gunjan Patidar, co-founders of Zomato, have ESOPs of Rs 207.8 crore, Rs 202.4 crore, and Rs 156.2 crore, respectively.
The options of Chief Financial Officer Akshant Goyal are worth more than Rs 100 crore. Vijay Lancy, a badminton player and coach, has ESOPs valued at Rs 74 crore. Lancy is linked to Fitso, the Zomato-acquired sports facility finding app.
Zomato, which was founded in 2008, has upgraded Pankaj Chaddah, Chopra, Patidar, Gaurav, and Mohit to co-founders in the last one year. Chaddah stepped down in 2018.
Only Goyal received 36.85 crore in third-category choices. His ESOPs alone are valued at Rs 2,800 crore.
Zomato has 3,755 workers worldwide as of March 2021, according to the RHP, with 545 in the product and technology team. There are three ESOP categories in the firm.
- Foodie Bay Employee Stock Option Plan 2014: There are a total of 41,766 choices accessible under this scheme. A total of 6,700 equity shares will be distributed for each choice.
- Zomato Employee Stock Option Plan 2018: There are a total of 18,135 choices available. When one of the options in this category is exercised, 6,700 equity shares will be distributed.
- Zomato Employees Stock Option Plan 2021: A total of 50.25 crore choices are available in this category. One equity share shall be awarded against one option under the rules of this plan.
On July 23, Zomato will be listed on the Indian stock exchange. On Thursday, the firm finalised the allotment of shares from its public offering. The registrant of the offering, Link Intime India Private Limited, has a website where investors may monitor their share allocation status.
"Trading Members of the Exchange are hereby informed that effective from Friday, July 23, 2021, the equity shares of Zomato Limited shall be listed and admitted to dealings on the Exchange in the list of 'B ' Group of Securities," informed BSE on July 22.