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News18
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- Business
- News18
Zomato Parent Eternal's Shares Boom, Executives Exercise ESOPs Worth Rs 419 Crore
ESOPs must be exercised before sale. Exercising gives executives the right to buy shares at a fixed, often lower strike price, allowing potential profit when sold later Shares of Eternal, Zomato's parent company, have hit an all-time high, creating a lucrative moment for employees, especially senior executives. On July 29 and 30, over 140 top officials exercised their Employee Stock Options (ESOPs), acquiring shares valued at Rs 419 crore. Employee stock options (ESOPs) must be 'exercised' before they can be sold. Exercising means an executive gains the right to buy company shares at a fixed, pre-agreed price called the strike price. This price varies for each executive but is usually lower than the current market price, allowing them to buy shares cheaply and potentially sell them later at a profit. Simply put, if the company performs well and its share price rises after listing, ESOP holders can make significant gains by selling their shares at higher prices. Companies issue ESOPs primarily to retain key executives over the long term. Executives Who Disclosed Their ESOP Exercise Details After exercising ESOPs, individuals can choose to either hold onto the shares or sell them. The decision is entirely theirs. According to The Economic Times, Blinkit CEO Albinder Dhindsa acquired shares valued at Rs 214.51 crore, making him the largest beneficiary among those who exercised their options. The remaining 31 executives have each acquired shares valued at over Rs 1 crore. Other notable executives, including Hyperpure CEO Rishi Arora, former Zomato food delivery CEO Rakesh Ranjan, his successor Aditya Mangala, and corporate development head Kunal Swaroop, collectively obtained shares worth Rs 378.50 crore, accounting for 90% of the total transaction. About half of the executives on this list are from Blinkit, while the rest are associated with Eternal, Zomato, Hyperpure, and District branches. Additional transactions included Kunal Swaroop's shares worth Rs 25.2 crore, Zomato's logistics AVP Adish Dhakad's Rs 24.1 crore, Blinkit's Udit Gupta and Aneesh Srivastava's Rs 14.8 crore and Rs 14.1 crore respectively, Rishi Arora's Rs 9.5 crore, and Blinkit's CTO Sajal Gupta's Rs 6.6 crore. Eternal Shares Overview Eternal, one of India's first major internet companies to go public in July 2021, initially priced its shares at Rs 76 each on BSE. Debuting at Rs 115, the stock peaked at Rs 138 on its first day before closing at Rs 125.85. A year later, on July 29, 2022, the stock plummeted to Rs 46.80 amid widespread declines in new-age company shares. However, following its acquisition of Blinkit (formerly Grofers) in June this year, Eternal's fortunes reversed. Blinkit quickly gained consumer trust, revitalising Zomato's shares, which soared to Rs 302.95 on December 6, 2024, delivering substantial returns to investors. Currently, Eternal's stock is trading above Rs 300. view comments First Published: Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
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Business Standard
18-07-2025
- Business
- Business Standard
Private sector bank chiefs take home hefty compensation cheques in FY25
Public sector banks' chiefs trail far behind, with the chairman of SBI, India's largest lender, earning a fraction of what private sector banks' chief executives make BS Reporter Mumbai Listen to This Article The heads of private sector banks earned hefty compensation in FY25, with HDFC Bank's managing director and chief executive officer (MD and CEO) Sashidhar Jagdishan and Kotak Mahindra Bank's MD and CEO Ashok Vaswani emerging as the top earners. In FY25, Jagdishan of HDFC Bank, India's largest private sector lender, earned ₹12.06 crore, up 12 per cent from last financial year. He has also been allotted 212,052 shares in Employee Stock Options (ESOPs) by the bank in FY25, the bank's annual report for the fiscal year showed. Jagdishan drew a remuneration of ₹10.77 crore in FY24. He was the highest
India Today
20-06-2025
- Business
- India Today
ED bars summons to advocates, exceptions need director's approval under law
The Enforcement Directorate (ED) on Friday issued a circular instructing its field formations not to issue summons to any advocate in violation of Section 132 of the Bhartiya Sakshya Adhiniyam, 2023. This section states that no advocate, at any point of time, should disclose any communication made to him without the client's circular mandates that any summons under the exceptions to this provision require prior approval from the Director of the Enforcement comes amid the probe agency's investigation into a money laundering case involving Care Health Insurance Ltd (CHIL) concerning the issuance of Employee Stock Options (ESOPs) at significantly undervalued prices. The case centres around the Employee Stock Ownership Plans (ESOPs) issued on May 1, 2022, which were reportedly priced much lower than market value. This issuance allegedly took place despite a formal rejection of the ESOP proposal by the Insurance Regulatory and Development Authority of India (IRDAI).As part of the ongoing probe, the ED summoned Pratap Venugopal, an independent director of CHIL, to ascertain the circumstances surrounding the issuance of the ESOPs and the board's discussions following IRDAI's rejection. However, given that Venugopal is a senior advocate practicing in the Supreme Court, the summons issued to him has now been ED said that any documents required from him in his capacity as an independent director will be requested via July 23 last year, the IRDAI directed CHIL to revoke or cancel any ESOPs that remain unallotted. In addition, the regulator imposed a penalty of Rs 1 crore on CHIL for non-compliance with its Watch
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Business Standard
18-06-2025
- Business
- Business Standard
Reverse-flipping and startup IPOs get boost as Sebi relaxes norms
The Securities and Exchange Board of India (Sebi) on Wednesday announced a slew of measures to ease the compliance burden in the stock markets ecosystem, encourage more companies to list on the bourses after reverse flipping to India, and facilitate greater foreign fund flows into government bonds. The market watchdog also decided to drop the norm that makes start-up founders and promoters ineligible to hold Employee Stock Options (ESOPs) and other share-based benefits at the time of filing their draft red herring prospectus (DRHP) for a public issue of shares. Sebi has allowed promoters to hold on to their ESOPs granted a year prior to the filing of their DRHP, while disallowing fresh ESOP issuances in the run up to the filing. At its meeting steered by chairman Tuhin Kanta Pandey, the Board also scrapped a rule that requires investors in fully paid up Compulsorily Convertible Securities (CCS) to hold shares arising from conversion of such securities for a minimum of one year. 'This has resulted in certain investors not being able to participate in the Offer for Sale in public issue,' the Board noted. These changes in regulations will assist companies contemplating reverse flipping — a term used for changing a firm's domicile from a foreign nation to India to facilitate domestic listing. Further, Sebi also allowed shares held by foreign ventures, alternative investment funds (AIFs) and public financial institutions to be factored into the minimum promoter contribution requirement for a public issue. Though clearing corporations were not officially on the board's agenda, Sebi chairman Pandey said the regulator has formed a working group to look into unbundling of charges by clearing corporations. Sebi chairman said that such charges cannot be a 'black-box' and need to be disclosed to the investors. He added that the ownership structure of clearing corporations will not change — a deviation from the past stance whereby the regulator had contemplated hiving them off from parent exchanges. Sebi has also eased the rules for delisting of public sector undertakings (PSUs) where government shareholding is over 90 per cent. Pandey said the relaxation will not be applicable to banks, NBFCs and insurance companies, and will benefit about five listed PSUs. The market regulator also announced a separate category for foreign portfolio investors (FPIs) for investing in government securities (gsecs). Such investors will have relaxed regulations on KYC, similar to that by RBI. These FPIs will also secure relief from making granular disclosures and get a longer timeline to disclose material changes. Further, Sebi also allowed Category-I and -II AIFs to form co-investment vehicles, approved changes in norms governing angel funds, and has initiated discussions on easing accreditation. The board also pulled back from its December 2024 decision, requiring regulated entities like merchant bankers to hive off non-core or non-regulated business into separate entities. Merchant bankers will be able to continue activities which are under other financial regulators. However, merchant bankers will have to disclose to the clients if the said activity, such as in an unlisted market, is unregulated. The Sebi board has also cleared a settlement scheme for brokers charged under the scam involving the National Spot Exchange (NSEL). Additionally, a settlement scheme for venture capital funds has also been introduced. Further, the market regulator has mandated dematerialisation of shares of certain key shareholders such as senior management before the filing of the DRHP.
Economic Times
18-06-2025
- Business
- Economic Times
Sebi board meeting: Regulator eases IPO rules for start-up founders, mandates dematerialisation of securities
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Market regulator Securities and Exchange Board of India ( Sebi ) on Wednesday relaxed the rules around Employee Stock Options (ESOPs) for start-up founders . Founders classified as promoters who received share-based benefits at least one year before filing the Draft Red Herring Prospectus (DRHP) will now be allowed to retain or exercise these benefits post-listing, a shift from the earlier requirement to liquidate them before an the existing regulations, promoters are ineligible to hold or be granted share based benefits, including ESOPs and if they held such share based benefits at the time of filing of DRHP they are required to liquidate such benefits prior to the provision has been found to be impacting founders classified as promoters at the time of filing of DRHP, the Sebi board meeting document other measures, with a view to enhance market transparency, Sebi has mandated dematerialization of securities for a wider range of stakeholders—including promoter groups, employees, directors, and institutional investors—prior to filing the DRHP. This expansion of the demat mandate is expected to reduce fraud, prevent loss or damage of physical shares, and improve regulatory Read: Sebi board meeting: Regulator approves PSU delisting, IPO reforms, dematerialisation of Securities. 10 key takeaways In a bid to streamline the public issue process and encourage ease of doing business, SEBI has also approved key amendments to the Sebi (Issue of Capital and Disclosure Requirements) Regulations, 2018, and SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. The move aims to simplify rules for companies planning to go public, especially those shifting their base back to India—a process known as "reverse flipping."One of the major changes addresses a long-standing issue related to equity shares arising from the conversion of fully paid-up Compulsorily Convertible Securities (CCS). Earlier, only equity shares acquired under approved schemes were exempted from a one-year holding period before being offered for sale in an IPO. Now, this exemption has been extended to shares arising from CCS conversions, enabling greater investor participation in public Board has also allowed certain 'relevant persons'—such as alternative investment funds, foreign venture capital investors, and public financial institutions—to contribute equity shares from CCS conversion towards the minimum promoter contribution (MPC), a flexibility previously granted only to measures were finalized after public consultations in March and April 2025 and reviewed by SEBI's Primary Markets Advisory Committee, reflecting SEBI's ongoing commitment to modernise India's capital markets.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
