Zomato CEO Deepander Goyal has voluntarily decided to give up his annual remuneration of Rs 3.5 crore till the end of FY26.
Zomato CEO Deepinder Goyal has voluntarily put aside his Rs. 3.5 crore in annual remuneration, extending his original decision by an additional two years. The move was revealed in the company’s Qualified Institutional Placement (QIP) documents.
Earlier, in FY21, Goyal announced that he would waive his salary for 36 months till the end of FY24. However, his latest decision means he will continue to forgo his salary until March 31, 2026. “In letters addressed to our Board dated March 24, 2021 and April 1, 2024, Dipendra Goyal voluntarily waived his salary,” the official document said. 1 April, 2021 to 31 March, 2026.”
Despite this, Goyal will continue to perform his duties as Managing Director and CEO of Zomato. He will also be eligible for variable salary, the amount of which will be decided by the Board at a later date.
It may be noted that Goyal owns 4.18 per cent stake in Zomato, which is valued at Rs 25,000 based on the share price at the close of trading on November 25. 10,000 crores is over. Their stock has risen significantly, with Zomato shares up over 140 percent. Year-to-date, as of 1 pm on November 26, per share stood at Rs. reaching 277.35.
As of 1 pm on November 26, Zomato’s market capitalization stood at Rs. 2,45,243 crore (about $28.8 billion). In comparison, its recently listed rival Swiggy has a market cap of Rs. 99,845 crore (about $11.8 billion).
Zomato shares jump
On November 25, Zomato shares jumped as much as 6 percent in early trading, driven by two key developments: its inclusion in the 30-stock Sensex, marking a first for a new-age company, and its Rs. 8,500 crore sanctioned. ($1 billion) Qualified Institutional Placement (QIP).
Zomato paid Rs per share for QIP. has set a floor price of 265.91, representing a discount of around 4% from its recent trading price. As stated in the exchange filing, the company may offer a further 5% discount to the floor price subject to final consultation with its bankers.
The Gurugram-based company has received shareholder approval to raise $1 billion to fend off growing competition from players like Zepto and Swiggy. Morgan Stanley is the lead banker for QIP. Zepto raised $1.35 billion in just five months earlier this year, while Swiggy went public with a $1.35 billion IPO earlier this month.
Once the fundraising is complete, Zomato will have around Rs. 19,300 crore ($2.3 billion) in cash reserves. This comes at a time when rivals, notably Zepto, are aggressively expanding to capture market share through new dark stores and increased cash burn.
Although Zomato had initially indicated that the funds raised from the QIP would be used to strengthen its balance sheet, the company now plans to allocate a significant portion to marketing and expanding its rapid commerce arm Blinkit, which is currently ahead of both Zepto and Swiggy in the market. .
Zomato which Rs. 8,500 crore ($1 billion) target, of which Rs. 2,137 crore ($250 million) will be earmarked for setting up and running dark stores and warehouses. Additionally, Rs. 2,492 crore will be directed towards advertising, marketing and branding initiatives in its business segment.
According to the offer document, the company will invest Rs. 1,769 crore, the remaining funds will be allocated for general corporate purposes, according to the offer document.