Delhivery grants 1,00,360 ESOPs at Re 1 exercise price; majority to vest over four years.
Stock falls up to 3.5% after a six-day rally amid Amazon’s global supply chain push.
Amazon’s “AWS of logistics” move rattles sector; FedEx, UPS shares plunge over 9%.
Delhivery ESOP Bonanza Meets Amazon Shock: Stock Slides After 6-Day Rally
Delhivery grants over 1 lakh ESOPs to employees even as its stock drops after Amazon’s global supply chain entry shakes the logistics sector.
Summary
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Logistics major Delhivery has granted 1,00,360 stock options to eligible employees under its Employee Stock Option Plan 2012, with effect from May 1. In a regulatory filing, the company said the board approved the move on May 4.
Each stock option can be converted into one fully paid-up equity share with a face value of Re 1, while the exercise price has also been fixed at Re 1 per share.
The filing further stated that out of the total options granted, 88,360 will vest over a four-year period — 10% after 12 months, 30% after 24 months, and 15% every six months thereafter.
The remaining 12,000 options will vest with 40% after 12 months and 15% every six months subsequently. Shares allotted under the plan will not be subject to any lock-in period and will rank pari passu with existing equity shares from the date of allotment.
Delhivery Stocks Fall
Shares of Delhivery came under pressure on Tuesday, slipping as much as 3.5% in early trade, a day after Amazon rolled out its global supply chain services, intensifying competition in the logistics space.
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The stock had risen for six consecutive sessions prior to the decline and featured among the top losers on the Nifty 500 index. It had also neared a retest of its IPO price of ₹487.
On Monday, Amazon announced that its Amazon Supply Chain Services will enable businesses to store and ship goods, from raw materials to finished products, as the e-commerce giant expands into a domain traditionally dominated by UPS and FedEx.
Shares of FedEx and UPS plunged more than 9% on Monday on the New York Stock Exchange.
The new offering is being pitched as the “AWS of logistics,” with early adopters including Procter & Gamble. Amazon currently operates a fleet of over 100 cargo aircraft, second only to FedEx and UPS, alongside an extensive network of warehouses and sorting facilities.
Q3 Results
Delhivery is scheduled to announce its financial results for the quarter ending March on May 16. In Q3, the company posted a profit of ₹39.6 crore, reversing a loss, compared with ₹25 crore in the corresponding period last year.
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