Zomato’s Parent Eternal Rewards Staff With Rs 211 Crore Stock Options India’s food delivery giant Zomato and its quick-commerce sibling Blinkit are once again in the spotlight —
India’s food delivery giant Zomato and its quick-commerce sibling Blinkit are once again in the spotlight — but this time, not for customer discounts or expansion moves. Instead, the buzz is about its parent company, Eternal Ltd., granting a whopping 64.13 lakh stock options worth Rs 211 crore to employees.
This move, announced on October 1 after approval from the company’s Nomination and Remuneration Committee, signals Eternal’s ongoing commitment to employee wealth creation while also raising big questions for investors about future dilution, valuation, and growth.
So, what exactly happened, why does it matter, and what should you make of it? Let’s break it down.
Eternal Ltd. has rolled out these stock options under three different Employee Stock Option Plans (ESOPs):
Each stock option carries an exercise price of Rs 1 per share, making it virtually a freebie compared to Eternal’s market value.
At Eternal’s closing share price of Rs 329.45 on October 1, the combined value of these options comes to about Rs 211.28 crore ($23.8 million).
Employee Stock Option Plans (ESOPs) are more than just perks. For high-growth tech companies like Eternal, they serve multiple strategic purposes:
For Eternal, which competes fiercely with Swiggy in food delivery and Zepto in quick commerce, retaining and motivating talent is critical.
The terms for these ESOPs vary slightly:
In plain terms, employees won’t necessarily cash in immediately — this is a long-term wealth creation strategy.
For Eternal’s employees, this grant is a huge win. With an exercise price of just Rs 1, the difference between market price and strike price is essentially a direct wealth boost once shares vest and are exercised.
Example: An employee receiving 10,000 ESOPs today could, at current prices, see an immediate notional wealth of ~Rs 32.9 lakh (10,000 x 329.45). Over time, if Eternal’s stock rises, that value could multiply.
This is why ESOPs are often described as a “golden handcuff” — employees have every reason to stick around and ride the company’s growth wave.
While this move is employee-friendly, investors should also pay attention to the dilution factor.
Issuing 64.13 lakh new shares means existing shareholder stakes get fractionally diluted. For a company like Eternal with a market cap in the billions, this may not be huge — but it still matters, especially if such issuances happen regularly.
However, the positive flip side is that well-incentivized employees can drive stronger business outcomes, which ultimately supports share price appreciation.
This ESOP allocation comes at a time when Eternal Ltd. is juggling multiple high-growth businesses:
Each of these verticals is in a hyper-competitive, fast-scaling phase. Retaining top talent across product, tech, operations, and logistics is crucial.
By handing out Rs 211 crore in stock options, Eternal is making it clear: the company sees employees as partners in long-term value creation.
Eternal isn’t alone in this strategy. Across Indian startups, ESOPs are becoming a mainstay of compensation. Companies like Flipkart, Paytm, Byju’s, and Ola have all used stock options to retain employees and create wealth stories.
In fact, ESOP buybacks and grants often make headlines because they represent a rare instance where employees of Indian startups see life-changing wealth creation, not just founders or investors.
For Eternal, the move also reinforces its positioning as one of India’s most employee-focused tech firms.
Eternal Ltd.’s decision to grant 64.13 lakh stock options worth Rs 211 crore isn’t just a financial footnote — it’s a clear signal of strategy.
Whether Eternal’s share price climbs further or faces competitive pressure, one thing is clear: its employees now have a bigger stake in the company’s success — literally.
