Zomato Ltd. decided to offer 10% of its issued capital to its employees at a price lower than its market value. The scheme adopted by Zomato Ltd. is

When a company offers shares to its employees at a price lower than the market value, this is known as an Employees Stock Option Plan (ESOP).

ESOP is a scheme where employees are given the option to purchase company shares at a predetermined price (called the exercise price or strike price) which is typically below the current market price. This serves as an incentive and reward mechanism for employees.

Let's understand why other options are incorrect:

Private placement of shares involves issuing shares to a select group of investors (like institutional investors, high net-worth individuals) rather than the general public. While employees could theoretically be part of this group, it doesn't specifically describe the scheme of offering shares to employees at below-market prices.

Issue of bonus shares means distributing free shares to existing shareholders in proportion to their current holdings. These are capitalization of reserves and are not sold at any price. They are not specifically meant for employees.

Employers contribution to EPFO refers to the Employees' Provident Fund Organisation - a retirement savings scheme. This has no connection with issuing company shares.

The key features that identify this as ESOP are:

• Offered specifically to employees
• At a discounted price (lower than market value)
• Part of the company's issued capital (10% in this case)

Therefore, Option 2: Employees Stock Option Plan is correct.