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    Zerodha unveils new Rs 100-crore ESOP plan: Report 

    Zerodha unveils new Rs 100-crore ESOP plan: Report 

    Zerodha unveils new Rs 100-crore ESOP plan: Report 
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    By CNBCTV18.com  IST (Published)


    Zerodha’s top executives and founders, Nikhil Kamath, Nithin Kamath and his spouse Seema Patil, had been embroiled in controversy earlier in the year for drawing a salary of over Rs 100 crore. The online stockbroking platform is one among a handful of profitable unicorns in India.

    Zerodha, India’s largest online stockbroker, has created a new employee stock options plan (ESOP), expanding its total pool ahead of Diwali, reported Entrackr. The company joins the list of startups like Paytm, Swiggy and Rivigo, among others, who have been expanding their ESOP pool in recent months.
    The budget stockbroking company has now allocated 7,00,000 options under its new ESOP plan, according to the latest regulatory filings with the Registrar of Companies (RoC). The new pool is worth a hefty Rs 100 crore in total, estimated Entrackr.
    The potential buyback of the ESOPs is estimated at Rs 200 crore, with Zerodha acquiring the options at Rs 1,400 each in 2021, a 100 percent jump from the previous prices. The new ESOP plan comes just after Zerodha had bought back Rs 65 crore worth of ESOPs. The company had bought back the shares at Rs 700 a share.
    “Since we don’t intend to list or get outside investors, the buyback is done as options in itself,” said Zerodha’s spokesperson to Entrackr.
    The company has not opted for outside investment nor has any plans of a public offering, instead relying on the company itself to be sustainable. Without any external valuation, the company’s self-assessed valuation for Rs 1,400 a share will put Zerodha’s value at $2 billion. Zerodha is one of the few unicorns that are profitable as well.
    The company has emerged as India’s largest stockbroker with six million clients and has plans of expanding its services by applying for an AMC (asset management company) licence. Zerodha managed to more than double its revenue in 2020, posting total revenue of Rs 1,040 crore in FY20.
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