Market-Bound Zomato Set To Share Spoils Of Food Delivery With Top Execs
The proposed public issue of food delivery app Zomato will not only make co-founder Deepinder Goyal wealthier but also unlock several crores for top executives vested with employee stock options.
The proposed public issue of food delivery app Zomato will not only make co-founder Deepinder Goyal wealthier but also unlock several crores for top executives vested with employee stock options.
According to a VCCircle analysis, 10 top executives are sitting on a cash pile of $100 million (over ₹750 crore) thanks to employee stock ownership plan (ESOP) options exercisable for about 13 crore shares.
The cash-pile value derives from the pre-IPO (initial public offering) per-share price of ₹61, arrived at by dividing the company’s most recent $5.4 billion valuation by the total number of outstanding shares.
The valuation of $5.4 billion comes from the February funding round worth $250 million, and the 666.61 crore share number from the IPO draft papers filed by the company to the regulator.
At the arrived share price of ₹61 apiece -- which really seems a conservative estimate – Goyal’s equity stake of 5.51% would be valued at about ₹2,254 crore.
This excludes the April 2021 ESOP options issued to him, exercisable during the vesting period of up to six years.
Other co-founders Mohit Gupta, Gaurav Gupta, and Gunjan Patidar own ESOPs worth more than ₹100 crore each, going by the same share price of ₹61.
Zomato did not immediately respond to a request for comment.
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