Stock trading platform Zerodha claimed unicorn valuation in its latest ESOP buyback offer, claims that it will spend Rs 60 Cr to Rs 65 Cr to buy back ESOPs from Sr. Mgmt & long-term staffers and offer liquidity options in its 10th year. With this, the company will be valuing itself at Rs 7000 Cr (about $1 Bn)
"the company has arrived at this valuation due to its current profitability and price-to-equity margins" CEO Nithin Kamath told ET
Last year, Zerodha created an ESOPs pool of around Rs 200 Cr for 850 employees. Under the buyback, the employees will be allowed to sell 5%-50% of the shares that will be vested this year, it has specified that the buy-back is being done at more than 4 times its book value, i.e.Rs 700/share, and will benefit close to 700 employees.