Latest news with #RishiArora
News18
a day ago
- 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.
India.com
a day ago
- Business
- India.com
Zomato's parent company Eternal's shares surged! executives utilised option of…, Rs 46 shares now climbed to Rs…
Shares of Eternal, the parent company of Zomato, have surged to record highs and it is considered as a golden period for the company's long-time executives. In the last two days of July (29 and 30), over 140 executives exercised Employee Stock Options (ESOPs) worth Rs 419 crore. Blinkit CEO Albinder Dhindsa alone exercised shares worth Rs 214.51 crore. Eternal's stock, which had fallen to Rs 46 at one point, has now climbed to Rs 300. What Are Eternal's ESOPs? ESOPs are company-issued shares granted to employees mostly at a pre-decided 'strike price' lower than the market price so they can buy it at cheaper price and sell later for profit. Companies typically issue ESOPs to retain executives for the long term. Once vested, these options can be exercised, and the shares can either be held or sold at the executive's discretion. How Executives Exercised ESOPs? According to The Economic Times, Dhindsa's transaction was the largest among the executives, while 31 others also exercised ESOPs worth over Rs 1 crore each. These included Hyperpure CEO Rishi Arora, former Zomato food delivery CEO Rakesh Ranjan, his successor Aditya Mangla, and Corporate Development Head Kunal Swaroop. Together, they accounted for Rs 378.50 crore worth of shares, representing 90% of the total value. Nearly half of the executives were from Blinkit, with others coming from Eternal, Zomato, Hyperpure, and District. Other notable transactions included Kunal Swaroop (Rs 25.2 crore), Zomato's AVP of Logistics Adish Dhakad (Rs 24.1 crore), Blinkit's Udit Gupta (Rs 14.8 crore) and Anish Srivastava (Rs 14.1 crore), Hyperpure's Rishi Arora (Rs 9.5 crore), and Blinkit CTO Sajal Gupta (Rs 6.6 crore). How Is Eternal Share Performing? Eternal was among India's first major internet companies to go public in July 2021, with an IPO price of Rs 76 per share. It listed at Rs 115 on the BSE, touched a high of Rs 138 the same day, and closed at Rs 125.85. By July 29, 2022, its shares had dropped to Rs 46.80 amid a sector-wide decline in new-age company stocks. That year, Eternal acquired Blinkit (formerly Grofers), a move initially met with investor skepticism.
Time of India
2 days ago
- Business
- Time of India
Blinkit founder Albinder Dhindsa leads Rs 419-crore Eternal Esop exercise
More than 30 Eternal executives converted options to more than Rs 1 crore of company shares. The Esop exercise comes as Eternal's stock hits a seven-month high, driven by Blinkit's impressive growth in the June quarter. The stock option exercise reflects confidence in the company's long-term prospects and aligns executive interests with shareholder value creation. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads More than 140 executives at Eternal exercised employee stock options worth Rs 419 crore over July 29 and 30, according to stock exchange disclosures made by the parent of food and grocery delivery platforms Zomato and Blinkit Blinkit CEO Albinder Dhindsa alone accounted for over half the value, while 31 other top executives also converted options to buy shares worth more than Rs 1 crore included restaurant grocery supply arm Hyperpure CEO Rishi Arora, former food delivery CEO Rakesh Ranjan, his successor Aditya Mangla, and corporate development head Kunal Swarup. Together, they exercised shares worth Rs 378.50 crore — forming 90% of the two-day half of these 32 executives were from Blinkit, while the rest were split between Eternal, Zomato, Hyperpure, and going-out business District, stock market disclosures converted options to buy seven million Eternal shares worth Rs 214.51 stock option exercise is conducted as per a board-approved schedule, people aware of the matter told exercise stock options means to buy the shares at a pre-agreed price, as per the employment agreement of the executive. The pre-agreed price, or strike price, at which they can buy the shares could be different for each executive. The strike price is typically lower than the market exercised, employees can choose to either hold on to the shares or sell them at market stock has been at its highest levels over the last seven months. On Friday, it ended 0.3% lower at Rs 300.80 apiece, valuing the company at Rs 2.9 lakh crore, or $33 billion.'When a company's stock price rises, executives with vested stock options are often encouraged to exercise them,' a chartered accountant with a Big Four firm said. 'If vested options remain outstanding when the share price is on an upswing, the unrealised Esop expense keeps sitting in the company's books and that hurts the bottom line.'Anshuman Das, CEO of executive search firm Longhouse, said, 'Exercising stock options triggers an income tax liability at the point of conversion to shares. When the sums involved are substantial, some executives choose to hold on to their stock, aiming to cover that tax payout with gains from upside in the company's share price.'Among executives who exercised the option, Swarup bought stocks worth Rs 25.2 crore, while Zomato's logistics AVP Aadish Dhakad converted options worth Rs 24.1 crore. Senior Blinkit executives Udit Gupta and Anish Srivastava have exercised stock worth Rs 14.8 crore and Rs 14.1 crore, respectively. Hyperpure's Arora converted options to stock worth Rs 9.5 crore, while Blinkit CTO Sajal Gupta exercised options worth Rs 6.6 crore.'For senior leaders, it is as much a strategic wealth-creation move as it is a show of confidence in the company's long-term prospects,' Das did not respond to ET's has maintained its leadership position in the fiercely competitive quick commerce segment, where it rivals players such as Zepto, Swiggy's Instamart, Flipkart Minutes, Tata Digital-backed BigBasket, Reliance's JioMart and Amazon the quarter ended June 30, Blinkit's gross order value (GOV) increased 140% year-on-year to Rs 11,821 crore — surpassing, for the first time, Zomato's GOV of Rs 10,769 competitive intensity in the quick commerce sector and the rapid expansion being undertaken by Blinkit pulled Eternal's net profit down 90% to Rs 25 crore Blinkit added 243 dark stores during April-June, taking its total store count to 1,544 as of June 30. Eternal announced its intent to open 3,000 stores over time, and said it was on track to have 2,000 such micro warehouses — from where 10-minute deliveries are made — by December.'We continue to believe the street is under-appreciating market share gains for Blinkit over the next two to three quarters as competition focuses on improving profitability, with potential for further share gains beyond FY26 on the back of the new 3,000 store guidance by Blinkit,' brokerage firm Goldman Sachs said in a research (then Zomato) was one of the first large domestic consumer internet startups to go public in July 2021, and it created 18 dollar millionaires through its Rs 9,375 crore initial public offering (IPO). This included founder and CEO Deepinder Goyal, and former top executives Gunjan Patidar, Mohit Gupta, Gaurav Gupta and Akriti the past decade of India's internet economy, Flipkart has emerged among the biggest wealth creators, having conducted Esop buybacks aggregating to around $1.5 billion across various tranches since 2018. The ecommerce marketplace rolled out a $50-million Esop buyback this year.'In fast-growing and highly competitive sectors, where leadership can directly influence growth trajectories and valuations, stock-based incentives align the interests of executives with long-term company performance,' Das of Longhouse said. 'They reward past contributions while also creating a strong motivation for leaders to stay invested in the company's success.'Esops had emerged as a prominent compensation tool in India during the rise of the country's software services giants, with companies such as Infosys using them to reward and retain talent. In the run-up to a public listing, firms often allocate additional stock options to founders and senior executives to incentivise sustained performance and align interests with shareholder value the case of legacy IT services companies, the gap between the employee wealth pool and founder or promoter wealth was also significant. However, founders in these firms retained a larger shareholding because they relied less on external capital, avoiding the kind of stake dilution seen in many newer, venture-backed businesses.
Economic Times
2 days ago
- Business
- Economic Times
Blinkit founder Albinder Dhindsa leads Rs 419-crore Eternal Esop exercise
ETtech More than 140 executives at Eternal exercised employee stock options worth Rs 419 crore over July 29 and 30, according to stock exchange disclosures made by the parent of food and grocery delivery platforms Zomato and Blinkit. Blinkit CEO Albinder Dhindsa alone accounted for over half the value, while 31 other top executives also converted options to buy shares worth more than Rs 1 crore each. They included restaurant grocery supply arm Hyperpure CEO Rishi Arora, former food delivery CEO Rakesh Ranjan, his successor Aditya Mangla, and corporate development head Kunal Swarup. Together, they exercised shares worth Rs 378.50 crore — forming 90% of the two-day transactions. Nearly half of these 32 executives were from Blinkit, while the rest were split between Eternal, Zomato, Hyperpure, and going-out business District, stock market disclosures converted options to buy seven million Eternal shares worth Rs 214.51 stock option exercise is conducted as per a board-approved schedule, people aware of the matter told exercise stock options means to buy the shares at a pre-agreed price, as per the employment agreement of the executive. The pre-agreed price, or strike price, at which they can buy the shares could be different for each executive. The strike price is typically lower than the market exercised, employees can choose to either hold on to the shares or sell them at market rate. Eternal stock at a high Eternal's stock has been at its highest levels over the last seven months. On Friday, it ended 0.3% lower at Rs 300.80 apiece, valuing the company at Rs 2.9 lakh crore, or $33 billion.'When a company's stock price rises, executives with vested stock options are often encouraged to exercise them,' a chartered accountant with a Big Four firm said. 'If vested options remain outstanding when the share price is on an upswing, the unrealised Esop expense keeps sitting in the company's books and that hurts the bottom line.'Anshuman Das, CEO of executive search firm Longhouse, said, 'Exercising stock options triggers an income tax liability at the point of conversion to shares. When the sums involved are substantial, some executives choose to hold on to their stock, aiming to cover that tax payout with gains from upside in the company's share price.'Among executives who exercised the option, Swarup bought stocks worth Rs 25.2 crore, while Zomato's logistics AVP Aadish Dhakad converted options worth Rs 24.1 crore. Senior Blinkit executives Udit Gupta and Anish Srivastava have exercised stock worth Rs 14.8 crore and Rs 14.1 crore, respectively. Hyperpure's Arora converted options to stock worth Rs 9.5 crore, while Blinkit CTO Sajal Gupta exercised options worth Rs 6.6 crore. 'For senior leaders, it is as much a strategic wealth-creation move as it is a show of confidence in the company's long-term prospects,' Das did not respond to ET's queries. Blinkit's rapid growth Blinkit has maintained its leadership position in the fiercely competitive quick commerce segment, where it rivals players such as Zepto, Swiggy's Instamart, Flipkart Minutes, Tata Digital-backed BigBasket, Reliance's JioMart and Amazon Now. For the quarter ended June 30, Blinkit's gross order value (GOV) increased 140% year-on-year to Rs 11,821 crore — surpassing, for the first time, Zomato's GOV of Rs 10,769 crore. However, competitive intensity in the quick commerce sector and the rapid expansion being undertaken by Blinkit pulled Eternal's net profit down 90% to Rs 25 crore. Blinkit added 243 dark stores during April-June, taking its total store count to 1,544 as of June 30. Eternal announced its intent to open 3,000 stores over time, and said it was on track to have 2,000 such micro warehouses — from where 10-minute deliveries are made — by December. Also Read: Quick commerce companies slow dark stores buildout to control cash burn 'We continue to believe the street is under-appreciating market share gains for Blinkit over the next two to three quarters as competition focuses on improving profitability, with potential for further share gains beyond FY26 on the back of the new 3,000 store guidance by Blinkit,' brokerage firm Goldman Sachs said in a research (then Zomato) was one of the first large domestic consumer internet startups to go public in July 2021, and it created 18 dollar millionaires through its Rs 9,375 crore initial public offering (IPO). This included founder and CEO Deepinder Goyal, and former top executives Gunjan Patidar, Mohit Gupta, Gaurav Gupta and Akriti Chopra. Also Read: Blinkit set for margin expansion after driving Q1 for Eternal: Analysts Stock rewards Over the past decade of India's internet economy, Flipkart has emerged among the biggest wealth creators, having conducted Esop buybacks aggregating to around $1.5 billion across various tranches since 2018. The ecommerce marketplace rolled out a $50-million Esop buyback this year. 'In fast-growing and highly competitive sectors, where leadership can directly influence growth trajectories and valuations, stock-based incentives align the interests of executives with long-term company performance,' Das of Longhouse said. 'They reward past contributions while also creating a strong motivation for leaders to stay invested in the company's success.'Esops had emerged as a prominent compensation tool in India during the rise of the country's software services giants, with companies such as Infosys using them to reward and retain talent. In the run-up to a public listing, firms often allocate additional stock options to founders and senior executives to incentivise sustained performance and align interests with shareholder value the case of legacy IT services companies, the gap between the employee wealth pool and founder or promoter wealth was also significant. However, founders in these firms retained a larger shareholding because they relied less on external capital, avoiding the kind of stake dilution seen in many newer, venture-backed businesses. Elevate your knowledge and leadership skills at a cost cheaper than your daily tea. 3 years on, Akasa's next challenge: Staying in the air against IndiGo's dominance Jane Street blow pushes Indian quants to ancient Greek idea to thrive Berlin to Bharuch: The Borosil journey after the China hit in Europe FIIs are exiting while retail investors stay put. Will a costly market make them pay? Stock Radar: TVS Motor breaks out from 1-month consolidation to hit fresh high; time to buy or book profits? FMCG sector: Both a consumption & tactical play; 7 stocks that have an upside potential of up to 30% F&O Radar| Deploy Short Strangle in Nifty for Theta decay benefits within index range These large- and mid-cap stocks may give more than 25% return in 1 year, according to analysts
