Zomato employees to get 4.66 crore shares at Re 1 apiece
By Lokmat English Desk | Published: July 27, 2022 05:54 PM2022-07-27T17:54:20+5:302022-07-27T17:54:20+5:30
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Zomato Share Price: Shares of food delivery company Zomato fell by 21 percent in the last few days. In view of the sale of shares, the company has decided to distribute 4.66 crore shares to its employees at Rs 1 each.
On July 26, the company gave information about this to the stock market. It is also said that the Nomination and Remuneration Committee of the company has approved the decision to give 4,65,51,600 equity shares to the employees under stock option.
Looking at the current share price of Zomato, the 4.66 crore shares would now be worth around Rs 193 crore. Shares of the company continued to rise today.
Zomato's one-year lock-in period of 613 crore shares ended on July 23. Also, experts had already expressed the possibility that after the end of this lock in period, there will be a huge sale in the shares of the company.
Investors who bought shares of the company before the IPO are now selling it. A major reason for this sale is that Zomato's market cap has fallen below its last private market valuation of $5.5 billion, say experts.
Lock-in period is for certain investors. Whenever the lock-in of a large percentage of the stock ends, those investors can sell their shares. They cannot sell their shares before the lock-in period.
In such a situation, if the investors start selling that share, its price may fall drastically. But investors don't necessarily have to sell shares. The share price has fallen by 33 percent in the last three months.
Shares of Zomato were listed on the stock market on 23 July 2021. Investors in the IPO got these shares at a rate of Rs 76 per share, while on BSE these shares were listed at Rs 115.
