Logistics unicorn Delhivery, a prominent player in India’s supply chain and logistics sector, has made headlines after allotting over 8.2 lakh equity shares to its employees. The allotment comes under the company’s various Employee Stock Option Plans (ESOPs), offering a significant reward for employee contribution and aligning their interests with the company’s long-term growth. The announcement was made in an exchange filing on February 11, 2025, and indicates a strong focus on employee retention and motivation.
This step is part of Delhivery’s broader strategy to reward and incentivize its workforce, ensuring that key employees remain committed to the company’s success. Through the ESOP scheme, Delhivery has granted options to its employees, which they can convert into equity shares after meeting certain vesting criteria.
According to the exchange filing, Delhivery has allotted 8,22,310 equity shares, each with a face value of INR 1. The shares are fully paid up and have been allotted against the exercise of vested options by employees under the ESOP schemes. As a result of this allotment, the company’s paid-up share capital has increased from INR 74.35 crore to INR 74.44 crore.
The allotted shares’ value, based on the last traded price of Delhivery’s stock, is approximately INR 23.38 crore. This share allotment is a positive development for the company’s employees, as it allows them to benefit from the company’s growth and success. The allotment also reflects Delhivery’s commitment to aligning its employee interests with shareholder value.
The shares allotted were split across different ESOP schemes:
- ESOP 2012: 1.8 lakh shares were granted under this scheme.
- ESOP II 2020: 5.3 lakh shares were allotted under this scheme.
- ESOP III 2020: 1.01 lakh shares were granted under this plan.
For ESOP 2012, the exercise price for 65,740 options is INR 1 per option, and for 1,21,220 options, the exercise price is INR 29.85. On the other hand, ESOP II 2020 and ESOP III 2020 both have an exercise price of INR 0.10 per option.
The company emphasized in its filing that the vested options can be exercised at any time from their respective vesting dates, as per the terms of the grants. This means that employees who have met the vesting criteria can exercise their options and convert them into equity shares.
With the allotment of over 8.2 lakh shares, Delhivery’s capital structure has undergone a slight change. The paid-up share capital has risen from INR 74.35 crore to INR 74.44 crore. While the increase may seem modest, it is indicative of the company’s growing employee base and its dedication to incentivizing employees by offering them a stake in the company’s long-term success.
The increase in share capital also reflects Delhivery’s continued growth trajectory and reinforces the company’s strategy of offering employees a stake in the company’s future performance. By providing employees with equity shares, Delhivery is ensuring that its workforce is motivated to contribute to the company’s future growth and profitability.
Delhivery’s stock price closed at INR 284.35 per share on the Bombay Stock Exchange (BSE) during the last trading session before the share allotment was made public. At this closing price, the newly allotted 8.22 lakh shares are valued at approximately INR 23.38 crore. The price movement of the stock in the market plays a crucial role in determining the value of the shares allotted under the ESOP scheme. Since the company’s stock is publicly traded, employees who exercise their vested options will see the value of their shares fluctuate with the market price.
The stock price of Delhivery has shown considerable growth, reflecting the company’s strong performance in the logistics sector. The share price is likely to remain a key factor in determining the overall financial gain for employees who opt to exercise their options.
In addition to the share allotment, Delhivery also made significant developments in terms of its leadership. The company recently appointed Namita Thapar, Executive Director of Emcure Pharmaceuticals, and Sameer Mehta, Co-founder and CEO of boAt, as non-executive independent directors to its board. This move is seen as part of Delhivery’s broader strategy to strengthen its leadership team and gain expertise from diverse sectors.
These appointments are set to take effect on February 17, 2025. With their extensive experience in the pharmaceutical and consumer electronics industries, both Thapar and Mehta are expected to bring valuable insights to Delhivery as it continues to scale its operations and expand its footprint in the logistics space.
Delhivery recently released its financial results for the third quarter of FY25, showing strong growth. The company’s consolidated net profit for Q3 FY25 surged by 114%, rising from INR 11.70 crore in the same period last year to INR 24.98 crore. This significant increase in profit was driven by strong revenue growth.
For the quarter ended December 31, 2024, Delhivery reported total revenue of INR 2,476.96 crore, including other income of INR 98.66 crore. This marks a notable improvement in the company’s financial performance, driven by increased demand in the logistics and supply chain sectors.
The company’s growth trajectory, as demonstrated by the results of Q3 FY25, is a positive sign for investors and employees alike. The strong revenue growth is indicative of the company’s ability to capitalize on the growing demand for logistics services, which is being fueled by India’s expanding e-commerce market and increased supply chain activity.
Delhivery’s recent actions, including the allotment of 8.2 lakh equity shares to employees under its ESOP schemes, the appointment of high-profile independent directors, and the release of its impressive financial results for Q3 FY25, underscore its commitment to growth, employee satisfaction, and shareholder value.
As the company continues to expand its operations in the logistics sector, these initiatives will likely help strengthen its position in the market, attract top talent, and improve employee morale. For Delhivery’s employees, the ESOP allotment provides a chance to directly benefit from the company’s success, while for investors, the company’s strong financial performance and strategic leadership decisions signal a promising future.
With the recent changes in its leadership and a solid financial performance in the third quarter, Delhivery appears well-positioned to navigate the challenges of the logistics sector and continue its path to becoming a leading player in the industry.
