New Delhi: With the aim of rewarding its staff ahead of its privatization, state-owned Bharat Petroleum Corp Ltd (BPCL) has offered its employees stock options at one-third of the market price.
“Approved the proposed Employee Stock Purchase Scheme (ESPS) to the specified employees through the trust mechanism, subject to the approval of the shareholders”, the company said in a regulatory filing on Friday.
While BPCL did not give details, a source with direct knowledge of the development said ‘BPCL Trust for Investment in Shares’ holds around 9.33 percent stake of the company’s paid-up share capital.
Of this, 2 percent will be offered to employees at one-third the price of BPCL scrip in the preceding six months, he said.
However, there will be no change in the government’s shareholding in the company.
The government is selling its entire 52.98 percent stake in BPCL to a strategic investor. Expression of Interest (EoI) for the privatization is due on September 30.
“The Trust formed for the purpose shall purchase the aforesaid shares from the ‘BPCL Trust for Investment in Shares’ by way of secondary acquisition through the stock exchanges as per the SEBI (Share Based Employee Benefits) Regulations, 2014 and other applicable laws,” the company said in the regulatory filing.
The source said the number of shares to be offered under the ESPS will depend on the grade of the employee and even directors on the company board would be eligible for the offer.
There will be a one-year lock-in period for the shares that employees buy under ESPS, he added.
After the shareholders approve, BPCL will make a former offer to employees.
BPCL closed at Rs 403.40 per share on the BSE on Friday.
Image Source: Internet