In a remarkable display of corporate generosity, Sanjay Shah, CMD, Prudent Corporate Advisory Services, has gifted equity shares worth Rs 34 crore to 650 employees and personal staff, including household help and drivers. This unprecedented gesture commemorates the company’s 25-year journey and underscores Shah’s gratitude towards those who contributed to its success.
The gift involves 175,000 equity shares, representing 0.4 per cent of Shah’s stake in the company. Prudent Corporate Advisory Services, India’s fifth-largest mutual fund distributor, announced that the move has received the necessary regulatory approvals, including clearance from the Securities and Exchange Board of India (SEBI).
Shah explained his intent, saying, “This is not just a transfer of shares; it is a heartfelt thank-you to those who have stood with me, not just as employees, but as companions on this journey. Their belief and contributions form the foundation of our success.”
The share distribution required special regulatory approval from the Securities and Exchange Board of India (SEBI). Shah successfully sought an exemption from rules that would have classified recipients as members of the promoter group, arguing that such classification would alter Prudent’s holding structure and potentially mislead investors.
SEBI granted the exemption, though it clarified that the decision is specific to this case and should not set a precedent for future transactions. Tax experts note that recipients may face tax liabilities under “other income” for gifts exceeding Rs 50,000 from non-relatives.
Shah, 58, currently holds approximately 42 per cent stake in Prudent, valued at Rs 7,797 crore, while his family owns an additional 13 per cent, bringing the total promoter stake to 56 percent. Prudent Corporate Advisory Services, which went public in 2022, has seen a significant rise in its share price, currently trading at Rs 1,883—well above its IPO price of Rs 630.
Unlike traditional corporate rewards that come with retention conditions, Shah’s gesture has no strings attached, making it a true expression of gratitude that has been widely praised across corporate India. Similar gestures have been seen at IDFC First Bank, where CEO V Vaidyanathan gifted shares to office staff and household help.
However, Shah’s initiative, backed by SEBI’s special exemption, reinforces the growing trend of personal wealth being used to reward loyalty and dedication in India’s corporate landscape.
This Holi, Shah’s act of gratitude has not only brought colour to his employees’ lives but has also set an inspiring benchmark in corporate leadership and employee appreciation.
“I wanted to surprise my employees with this gift to make them feel like valued members of the company,” Shah added, setting what many online commentators are calling an exemplary standard for corporate recognition and appreciation.
