ESOP is not a as big issue as management. If I remember correctly, in on one ESOP grant – fair value is around 800-860 INR/ share so they had to book cost based on this. If stock price is itself comes down from that price than actually it less cost than what they have booked in PnL so in a way company was making a bit more profit than it had reported. In stock market, you have to nimble and always try to see what is value and price and difference between them. at around 350-400 it was good value (not great!) but after acquisition of OLX and as I do not have much information on the same so it hard to value. Last ESOP grant had exercise price was around 470 INR/ Share so at that price employee get the stock.
There is one more thing – if unallocated ESOP expires then company can change exercise price with shareholder approval so you want to keep this in mind.
Need more details on acquisition as they have spent almost an half of the reserve but at this moment they are saying that they can disclose after transaction close.
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