Delhivery Increases ESOP Pool With Over 6.49 Lakh Equity Shares

Nitin Konde, Varun Bhardwaj

Nov 5, 2024 — 2 min read

Delhivery Expands ESOP Pool

In an effort to reward and retain its staff, Delhivery Limited, a well-known logistics company, announced the extension of its employee stock option plan (ESOP) pool, awarding 6,49,547 equity shares.

According to a formal exchange filing, this allocation was approved by the Stakeholders' Relationship Committee on July 8, 2024. Delhivery's paid-up share capital has increased from INR 73.85 crore to INR 73.91 crore as a result of this most recent allocation. The newly awarded ESOPs are worth about INR 25.4 crore based on the most recent opening stock price.

In little more than a month, Delhivery's ESOP pool has grown three times with this allocation. The business granted 36,525 stock options to the ESOP 2012 plan earlier in July. Before that, Delhivery had added 11.06 lakh stock options to the ESOP pool in June.

Performance in Terms of Finances and Strategic Initiatives

Delhivery has experienced financial difficulties in spite of these calculated attempts to raise staff engagement. Compared to the net profit of INR 11.7 crore reported in the previous quarter, the company's consolidated net loss for the fourth quarter of FY24 was INR 69 crore.

A decrease in express parcel and cross-border service volumes was the main cause of the 5% quarter-over-quarter drop in operations revenue to INR 2,076 crore. Delhivery has also revealed plans to establish Delhivery Robotics India as a wholly-owned subsidiary in keeping with its strategic growth ambitions.

This new business endeavour, which reflects Delhivery's dedication to innovation and growth in logistics solutions, intends to produce drones and offer freight air transportation services.

Current Patterns in the Market

The expansion of ESOP pools is not a Delhivery-specific trend. Significant ESOP allocations have also lately been announced by a number of other cutting-edge software businesses.

For example, Nykaa distributed over 4.73 lakh ESOPs last month, and Paytm distributed over 2.81 lakh ESOPs recently. These actions are part of a larger industry trend that uses ESOPs as a tool to draw in, inspire, and keep top people in a cutthroat market.

Paytm Expands ESOP Pool

Similar to this, One97 Communications-owned Fintech giant Paytm stated that it has expanded its employee stock option plan (ESOP) pool by giving its employees 281,394 equity shares. This move is typically made to retain talent.

In a July 7 stock exchange filing, Paytm stated that it has authorised the distribution of 281,394 equity shares, fully paid-up, with a face value of INR 1 each, to qualified workers.

According to the business release, the shares would be distributed under the Employee Stock Option Schemes of 2008 and 2019. Paytm stated that the change would raise its issued, subscribed, and paid-up equity share capital to INR 636,274,090, which would be made up of 636,274,090 equity shares with a face value of INR 1 each.