Oct 1, 2024
September 2024 ESOP Roundup: Capgemini, Aditya Birla Nykaa, Delhivery and more expands their ESOP Pool.
Let’s dive into the latest trends and announcements that underscore the rising significance of ESOPs in today’s corporate landscape.
Welcome back to the latest edition of Fables of ESOPs. As India’s festive season unfolds, so do its employee compensation plans. Whether it's due to the festive spirit or the ongoing momentum in Employee Stock Ownership Plans (ESOPs), October has seen several industry leaders stepping up to expand or launch their ESOP initiatives.
Several companies, including IdeaForge, KFin, and Squent Scientific, have announced the allocation of new equity shares and an expansion of their Employee Stock Ownership Plan (ESOP) pools. In contrast, WhatFix has revealed its plans for a new liquidity event. Additionally, Swiggy is making headlines as its founder is set to receive a substantial $200 million ESOP package in anticipation of the company's upcoming IPO.
Let’s discuss all the major ESOP events in detail.
ideaForge Technology has recently expanded its equity share capital by issuing 1,450 equity shares as part of its Employee Stock Option Plan (ESOP). This issuance brings the fully paid-up equity share capital to ₹43,03,02,860, up from ₹43,02,88,360. Each share is priced at ₹10.
Prior to this issuance, in August, ideaForge had allocated 39,000 equity shares, which increased the company's paid-up equity share capital from ₹42.98 crore to ₹43.02 crore.
KFin Technologies has recently enhanced its equity share capital by issuing 58,897 equity shares through its Employee Stock Ownership Plan (ESOP). This issuance raised the company’s total issued, subscribed, and paid-up equity share capital from ₹171,40,71,980 to ₹171,46,60,950. Each equity share is priced at ₹10.
Previously, on September 19, KFin Technologies allotted 32,133 equity shares, which increased the paid-up equity share capital from ₹171,37,50,650 to ₹171,40,71,980.
Bandhan Bank has allotted 200 equity shares under ESOP on 14 October 2024. Following the allotment, the Bank's issued and fully paid equity share capital has risen from Rs.16,10,97,11,250/- comprising of 1,61,09,71,125 equity shares of Rs.10/- each fully paid-up to Rs. 16,10,97,13,250/ consisting of shares priced at Rs 10/- each.
Bandhan Bank’s last ESOP allotment was 756 equity shares in August.
Sequent Scientific has recently allotted 60,000 equity shares under its ESOP plan. Following this allotment, the issued and the company's paid-up capital from equity shares will rise from ₹49,91,63,990, comprising 24,95,81,995 equity shares at ₹2 each, to ₹49,92,83,990, consisting of 24,96,41,995 equity shares at ₹2 each.
Sequent Scientific Ltd is a pharmaceutical company that focuses primarily on animal health. It develops active pharmaceutical ingredients (APIs) and formulations, providing a range of products and services for veterinary applications.
Genesys International Corporation has recently issued 59,696 equity shares, each with a face value of ₹5, as a result of stock options exercised by eligible employees under the Genesys ESOP Scheme 2020 and 2022. This issuance will lead to an increase in the company's paid-up capital to ₹19,84,69,300, which is now divided into a total of 3,96,93,860 equity shares, also with a face value of ₹5 each.
As industry leaders in advanced mapping, survey, and geospatial services, Genesys International Corporation Ltd. offers comprehensive omnichannel customer experience services. The company is trusted by over 10,000 clients across more than 100 countries worldwide.
VIP Industries, India’s largest luggage manufacturing company has recently issued 15,457 equity shares under the VIP Employees Stock Appreciation Rights Plan, 2018. Following this allotment, the company’s equity base has increased from 14,19,97,991 shares to 14,20,13,448 shares, each with a face value of ₹2.
EKI Energy Services, which was previously referred to as EnKing International, is a prominent global provider of carbon credits. Recently, the company issued 1,691 equity shares as part of its Employee Stock Ownership Plan (ESOP). As a result, the issued and paid-up equity share capital has increased from ₹27,53,16,760 to ₹27,53,33,670, comprising 2,75,33,367 fully paid-up equity shares of ₹10 each.
On October 7, Whatfix, a B2B digital adoption platform, announced its fourth liquidity program valued at $58 million. This initiative includes an Employee Stock Option Plan (ESOP) and a secondary sale by existing investors such as Helion and Eight Roads, following its recent $125 million Series E funding round.
Eligible current and former employees are offered the opportunity to liquidate a portion of their vested shares.
“This program underscores our commitment to business growth while recognizing those essential to our achievements. We’re cultivating a culture of ownership and innovation by enabling employees and investors to participate in our success,” stated Khadim Batti, cofounder and CEO of Whatfix, in a media release.
On October 2, 2024, Zomato announced in a BSE filing the grant of 11,997,768 stock options to eligible employees under its Foodie Bay Employee Stock Option Plan 2014 (ESOP 2014) and Zomato Employee Stock Option Plan 2021 (ESOP 2021).
Each option can be converted into one fully paid-up equity share with a face value of ₹1. At Zomato’s current share price of ₹275.2, these options are valued at a total of ₹330.17 crore. This announcement contributed to a 2.38% increase in Zomato’s share price, signaling a positive response from the market.
Swiggy founder Sriharsha Majety received a new package of stock options shortly before the company filed for an initial public offering (IPO). These options are part of a 2024 employee stock ownership plan (ESOP) and will increase his ownership stake in the company by 2-2.3%.
The value of these options is over Rs 1,820 crore (about $217 million) based on recent share prices in secondary sales.
Additionally, other top executives and employees, including the new CEO of Instamart Amitesh Jha, co-founders Nandan Reddy and Phani Kishan, food delivery CEO Rohit Kapoor, CFO Rahul Bothra, HR head Girish Menon, and tech head Madhusudhan Rao, were also granted stock options.
Recent developments in the Indian food delivery sector highlight a growing trend in employee ownership as a strategy for growth and talent retention. Swiggy's founder, Sriharsha Majety, received a remarkable stock allocation valued at approximately $217 million in the company's pre-IPO phase. Meanwhile, Zomato has granted substantial stock options totaling 12 million shares to its employees. These initiatives reflect a renewed confidence in Employee Stock Ownership Plans (ESOPs) as an effective way to fairly compensate employees while promoting a culture of growth and inclusivity within organizations.
As we approach November, we anticipate more ESOP packages as part of the bonus measures to be announced. Stay tuned to learn about all the ESOP activity India will experience in the upcoming months.
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