My understanding from the FY23 Annual Report (start with Annexure C)
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The Employee Benefit Trust (EBT) was set up to purchase shares from the secondary market as a basis to provide share based incentives to employees.
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EBT borrowed from the parent to make purchases into the trust and was holding ~32 lakh shares
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The seems to be a mechanism for price of share to be set at purchase price + cost.
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There is an additional note that says that since the share price has declined, the scheme is not attractive any more (I assume this means their purchase cost made it unattractive as an incentive). The note says it will look at revising the scheme in accordance with SEBI rules for share based incentives. The action they seem to have taken is to liquidate the current shares and will probably launch a new scheme (the latter is just speculation – I have no way of knowing)
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They did not dispense any shares to employees in FY23 (their share incentive program is called STAR scheme)
Does not seem like anything significant (other than not having a good share based incentive and whether this may result in key employee attrition) – but happy to be corrected
Disc. Am invested so my interpretation may be biased
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