Food delivery giant Zomato has allotted 38.72 lakh equity shares under its employee stock option plans (ESOPs). The update was reported by the company on the exchange filing on August 29.
Under an employee stock ownership plan, businesses offer their employees stock shares as a kind of ownership stake in the business. As a result of the recent allotment, the company's issued, subscribed, and paid-up equity share capital will increase from Rs 883.05 crore, which consists of 883.05 crore equity shares with a face value of Rs 1 each, to Rs 883.44 crore, consisting of 883.44 crore equity shares with a face value of Rs 1 each.
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Additionally, before the company’s Q1 FY25 results were declared, the company granted 35.17 lakh ESOPs to its employees. The company allotted 35,17,051 equity shares at a face value of Rs 1. The company mentioned in an exchange filing that these employees used their stock options to buy these shares.
Meanwhile, Zomato also got GST demand notices of Rs 4.59 crore from Tamil Nadu and West Bengal authorities. This includes applicable interest and penalties. The demand notice has been passed by the Assistant Commissioner of Revenue, government of West Bengal, and the Assistant Commissioner of GST and Central Excise, Nungambakkam Division, Tamil Nadu. The notice from Tamil Nadu relates to excess availment of input tax credit, along with interest and penalties, while the notice from West Bengal pertains to non-payment of GST on delivery charges, including interest and penalties.
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The company mentioned in an exchange filing that it is planning to file an appeal against the tax notice that it has received from the respective governments as they believe that they have a strong case. The company said, “We believe that we have a strong case on merits, and the company will be filing an appeal against the order before the appropriate authority.”
