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Tag: Delhivery ESOP

  • 7.8 Lakh Equity Shares Are Allotted by Delhivery Under ESOP Plans

    The allocation of 7.8 lakh equity shares for the exercise of vested options under its employee stock option plan (ESOP) has been approved by logistics giant Delhivery. In an exchange filing, Delhivery Limited stated that on December 10, 2024, the stakeholders’ relationship committee authorised the issuance of 7,84,927 equity shares with a face value of INR 1 each, fully paid up against the execution of vested options. The allocation of these shares was made under ESOP 2012 for 1.96 lakh shares, ESOP II 2020 for 1.2 lakh shares, and ESOP III 2020 for the remaining 4.6 lakh shares.

    The firm has fixed the exercise price for 96,350 stock options under ESOP 2012 at INR 29.85, 1,915 stock options at INR 16.28, 95,882 stock options at INR 1, and the remaining 2,200 stock options at INR 0.1. The exercise price for all stock options under ESOP II 2020 and ESOP III 2020 is INR 0.10.

    Marginal Increase in Paid-Up Capital

    The startup’s paid-up capital climbed slightly to INR 74.3 Cr from INR 74.2 Cr after these shares were allocated. Delhivery‘s stock was down 0.67% from its previous closing of INR 380.85 at 1:26 PM, trading at INR 378.30. This occurs at a time when Delhivery recently added 20,000 new stock options to the pool size of its ESOP 2012. The business also distributed 8.6 lakh equity shares under its ESOPs a few months ago.

    Sahil Barua, Mohit Tandon, Bhavesh Manglani, Suraj Saharan, and Kapil Bharati founded Delhivery, a logistics, supply chain, and transportation firm, in 2011. Amazon Shipping, Flipkart‘s Ekart Logistics, Blue Dart, and Xpressbees are some of the competitors of the logistics powerhouse.

    Notably, Delhivery approved the allocation of 6,15,930 equity shares with a face value of INR 1 just one month prior to the current ESOP expansion. In addition, on September 2, it granted 63,538 stock options to qualified workers.

    Current Financial Dynamics

    Anindya Ghose, a non-executive independent director of Delhivery, resigned last week, citing a number of personal obligations. Additionally, the startup intends to intensify its focus on speedier delivery services by establishing a network of multi-tenant dark stores that would offer e-commerce businesses swift delivery. Compared to a loss of INR 102.9 Cr in the same quarter last year, Delhivery reported a consolidated net profit of INR 10.2 Cr in the second quarter of FY25. In the quarter under review, service revenue increased 13% to INR 2,189.7 Cr from INR 1,941.7 Cr in the same period last year.

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  • Delhivery Increases ESOP Pool With Over 6.49 Lakh Equity Shares

    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.

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