In a clear signal of its continued faith in equity-driven compensation, Eternal Limited—the parent of Zomato—has approved a fresh grant of 74.18 lakh employee stock options (ESOPs). The move highlights the company’s sustained strategy of rewarding employees through long-term wealth creation rather than immediate cash payouts.
At the current share price of ₹224.7, the newly approved ESOPs are valued at approximately ₹167 crore, making this one of the more substantial recent grants by the company.
Credits: Yourstory
A Structured Allocation Across Growth Phases
The ESOP grant isn’t a one-size-fits-all allocation—it reflects the company’s evolution over time. The options have been distributed across three different ESOP schemes introduced during distinct phases of the company’s journey.
The majority—56.16 lakh options—has been issued under the ESOP 2024 plan, signaling a strong push to incentivize current and future leadership. Meanwhile, 18.02 lakh options fall under ESOP 2021, a scheme that was introduced around the time the company entered public markets. The legacy ESOP 2014 plan accounts for only a minimal portion of the grant, underscoring a shift toward newer frameworks.
This layered structure mirrors Eternal’s transition from a startup to a publicly listed, multi-vertical company.
Deep Discounts, Long-Term Gains
One of the most striking aspects of the ESOP grant is its pricing structure. Each stock option can be converted into one equity share with a face value of ₹1, and the exercise price is also set at ₹1.
This effectively makes the options deeply discounted compared to the current market price, offering employees a significant upside potential. However, the real catch—and the strategic brilliance—lies in the long vesting horizon. Employees can exercise these options over a period extending up to 10 years from vesting.
This ensures that employees remain invested—both financially and emotionally—in the company’s long-term success.
A Legacy of Equity-Driven Culture
Eternal’s reliance on ESOPs isn’t new—it’s deeply embedded in its DNA.
The ESOP 2014 plan dates back to the early days when the company was still known as Foodiebay. At that stage, equity incentives played a crucial role in attracting and retaining talent in a high-risk startup environment. Many early employees benefited significantly, particularly around the IPO phase.
The ESOP 2021 plan marked a transition. Introduced around the time of listing, it expanded the ESOP pool to align employee incentives with public market performance and shareholder expectations.
The latest ESOP 2024 plan reflects a more mature organization—one that is diversifying into newer verticals like quick commerce and needs to retain experienced leadership in an increasingly competitive market.
Consistency in Execution
This isn’t a one-off move. Eternal has been consistent in issuing ESOPs over the years.
As recently as October last year, the company granted 64.13 lakh stock options to employees. In April 2025, it allotted smaller batches under older schemes, collectively valued at around ₹4.42 crore at the time.
Such regular issuances indicate that ESOPs are not just a reward mechanism but a core component of the company’s compensation strategy.
Talent Wars and Strategic Timing
The timing of this ESOP grant is significant. The food delivery and quick commerce sectors are currently witnessing intense competition—not just for customers, but also for talent.
Companies are under pressure to strike a balance between profitability and aggressive expansion. In such an environment, equity-based compensation becomes a powerful tool. It helps conserve cash while still offering employees a share in the company’s future upside.
For Eternal, which has undergone corporate restructuring and rebranding in recent years, ESOPs serve as a bridge between its past and future—aligning employee interests with long-term business goals.
More Than Just Compensation
At its core, Eternal’s ESOP strategy is about more than just pay—it’s about ownership.
By giving employees a stake in the company’s success, Eternal is fostering a culture where growth is shared. As the company navigates the next phase of its journey, these stock options could turn into significant wealth for employees—just as they did for many in its early years.
In a fast-evolving industry, that sense of ownership might just be the company’s biggest competitive advantage.
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