Welcome back to the new edition of Fables of ESOPs. In April, we saw various companies rolling out their maiden ESOP plans, business giants like WeWork initiating their ESOP Liquidity schemes and a one of its kind leveraged ESOP sale by Rapid Response. This blog will cover the major news from the ESOP World for you.
Sula Vineyards announced in its exchange filing that they had allocated 19,271 stock options to its employees. These options have been allotted at a face value of Rs 2 each and an exercise price of Rs 170 per share.
Nashik-based Sahyadri Farms, India’s largest integrated value chain owned by small and marginal farmers has announced employee stock ownership plans (ESOPs) 2023 worth ₹45 crore to its employees out of the total ESOPs pool created for an amount of ₹70 crore.
VerSe Innovation, the company behind the short video entertainment app Josh and the vernacular news aggregation Dailyhunt, recently expanded the amount of ESOP choices available to investors
According to VerSe Innovation's regulatory filing with the Registrar of firms (RoC), the board of directors has approved a special resolution to issue 5,95,121 employee stock options (ESOP) to the staff of its subsidiary firms. Fintrackr estimates this to be worth around $420 Mn.
Ergode, a multinational consumer products firm with more than 650 people that serve millions of clients online from more than 32 countries, established an Employee Stock Option Plan (ESOP) to recognise and honour the commitment and hard work of its staff.
The ESOP pool for Ergode comprises 4% of the company's shares and is completely sponsored by the company. This means that employees do not need to contribute any funds to participate in the program.
Sharp Sight Eye Hospitals has rolled out anla ESOP Plan, offering around 3.98 per cent of its equity share capital to the staff in a bid to incentivise them and improve their performance. About 89 employees who have spent over three years in the company will be able to benefit from this scheme.
ESOP Liquidity Program
Co-working space giant WeWork announced its first ESOP Surrender Program in which its employees are eligible to surrender up to 25% of their vested stocks.
Innoviti announced their third ESOP Liquidity program. The offer price was at a 17% premium to their previous buyback program in November 2021. 25% of employees with vested options participated in the program.
Leveraged ESOP Sale
Missouri-based trucking company Rapid Response has been sold to its employees under an employee stock ownership plan (ESOP). Investment banking firm ButcherJoseph & Co., which advised Rapid Response on the transaction, announced the closing Friday. Rapid Response is listed as having 65 drivers and 69 power units, according to Federal Motor Carrier Safety Administration data. The new structure, which went into effect at the end of the year, means the company is now 100% owned by its employees.
“Through a leveraged ESOP sale, we provided liquidity to the seller as well as an opportunity for employees to participate in the future growth of the Company,” said Alberto del Pilar, managing director at ButcherJoseph.