Zomato's parent Eternal grants ESOPs worth ₹211 crore
What's the story
Eternal, the parent company of Zomato, has announced a new round of employee stock options (ESOPs). The move covers 64.13 lakh equity shares under different ESOP plans. The company's Nomination and Remuneration Committee approved the grant under three plans: Foodie Bay Employee Stock Option Plan 2014, Zomato Employee Stock Option Plan 2021, and Zomato Employee Stock Option Plan 2024.
Valuation
Valuation of newly issued ESOPs
At Eternal's current share price of ₹330, the newly issued ESOPs are valued at a whopping ₹211 crore. Prior to this, the company had issued 10.13 lakh ESOPs worth around ₹33 crore under its 2021 Zomato Employee Stock Option Plan. This shows a consistent effort by Eternal to incentivize and reward its employees through stock options.
Share acquisition
Institutional interest in Eternal shares
On Wednesday, Bank of America's investment banking arm, BoFA Securities Europe SA, acquired 8.2 million shares of Eternal in a bulk deal. The shares were purchased from Goldman Sachs Bank Europe SE at ₹325.5 per share, amounting to nearly ₹267 crore. This major transaction highlights the growing interest in Eternal and its subsidiaries such as Zomato among institutional investors.
Financial performance
Financial performance of Eternal in Q1 FY26
In the first quarter of the current fiscal year, Eternal's revenue from operations jumped 70% to ₹7,167 crore compared to ₹4,206 crore in Q1 FY25. However, the company's profit plummeted by 90% to ₹25 crore in Q1 FY26 from ₹253 crore in Q1 FY25. These numbers indicate a strong growth trend for Eternal but also highlight challenges on the profitability front.