ESOPs are an interesting way to offer employees an alternative to cash compensation by providing them with stock options that may have value in the future. Following the same track, Cipla, the Indian pharmaceutical company, and HDFC Bank have allotted shares to their employees for stock options.
As for Cipla, the company has allocated 6,537 shares worth Rs 13,074 to employees. The initiative is a part of the company’s Employee Stock Options Scheme (ESOP’s) 2013-A. As per an exchange filing on Wednesday, the shares have a face value of Rs 2.
As per the reports, shares of Cipla were trading at Rs 914.55, showing a decline of 1.05 per cent from the previous session. However, company’s issued, subscriber and paid-up share capital rose to Rs 1,61,43,14,260, comprising of 80,71,57,130 shares, following the allocation of shares to employees under the Employee Stock Options Scheme 2013-A.
Furthermore, Cipla had signed a perpetual agreement with Novartis Pharma on April 10 for manufacturing Galvus branded products.
Coming to HDFC, the Indian private sector bank, has also announced via an exchange filing that it has allotted 9,72,706 equity shares to its employees. The stocks are available to the employees who have exercised their stock options.
The allotment has reportedly increased the paid-up share capital of the private lender to Rs 5580715492. This announcement comes after the release of HDFC’s financial results.
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