The top leadership of Zomato Ltd., which filed its draft red herring prospectus (DRHP) with market regulator Securities and Exchange Board of India (SEBI), last week, now stands to make more than ₹786 crore ($106 million), as a part of the firm’s upcoming initial public offering (IPO).
The top 10 executives of Zomato are sitting on a cash-pile value of ₹786 million (or over $100 million), as a result of the stock options granted to them in 2014 and 2018, through the company’s employee stock ownership plan (ESOP) policy.
The cash pile value is derived by dividing the company’s most recent $5.4 billion valuation, ascribed to it in February 2021, by the total number of outstanding shares, resulting in an arrived share price of ₹61 apiece.
Top gainers include Zomato’s co-founders – Mohit Gupta, Gaurav Gupta, Gunjan Patidar, whose stock options are valued at a combined ₹453 crore, and hold 74.50 million equity shares in the entity, according to Zomato’s DRHP.
Mohit Gupta, which joined Zomato in 2018 to lead the company’s food delivery business from MakeMyTrip, has been allocated 27.33 million equity shares by the company, which were valued at ₹166 crore. Zomato had elevated Gupta as company co-founder in May, last year.
While former chief operating officer (COO) of Zomato, Gaurav Gupta, who took on the responsibility to launch the company’s nutrition business in November 2020, has stock options worth ₹162 crore in the company.
Gunjan Patidar, who is associated with the company right from its early days and currently serves as Zomato’s chief technology officer, has stock options worth ₹125 crore.
Zomato’s former chief financial officer (CFO), Akriti Chopra, has been granted close to 15.30 million shares, worth ₹93 crore and while current CFO, Akshant Goyal holds shares worth ₹80 crore.
As a part of its draft offer, Zomato said that the company will be issuing fresh equity shares worth ₹7,500 crore, along with the company’s early backer Info Edge India Ltd selling its stake worth ₹750 crore in Zomato’s upcoming public offering.
In addition to this, the Gurugram-based foodtech major has proposed an IPO worth ₹8250 crore,and plans to use ₹5,625 crore worth of the net proceeds (including pre-IPO funding) towards funding organic and inorganic growth initiatives.
Surobhi Das, who heads customer experience for Zomato, currently holds options worth ₹59 crore; while Rahul Ganjoo, the company’s food delivery head and Daminee Sawhney, head of human resources, hold stock options worth ₹53 crore and ₹42 crore respectively.
Zomato’s founder Deepinder Goyal, currently holds 5.51% stake in the company worth ₹2254 crore.
As per Zomato’s latest shareholding pattern, Info Edge is the largest shareholder and controls 18.5% in the company, followed by Uber B.V. holding 9.13%, with Alipay Singapore Holding Pte. Ltd and Antfin Singapore Holding Pte. Ltd holding close to 8.33% and 8.22% in the company respectively.
The article was first published on livemint.com.