It's raining shares for employees at top companies
Seeking to reward their staff amid an uptrend in the stock market, top blue-chip companies like HDFC Bank, ITC, L&T, Kotak Mahindra Bank and Wipro have awarded crores of shares to their employees and many more such equity offerings appear to be in the pipeline.
As the financial year 2012-13 draws to an end next month, 20 of the country's biggest blue-chip firms have together allotted shares worth nearly Rs 5,500 crore to their staff this fiscal upon the exercise of employee stock options.
During the remaining period of the current year, thousands of crores worth equity shares might be further allotted as both the companies and employees tend to prefer exercise of stock options towards the fiscal-end and during a rising equity market.
The market benchmark Sensex has appreciated by over 11 per cent so far in the current fiscal, while the gains were much higher before some correction and consolidation in the stock market during the recent weeks.
Among the top firms, premier private sector lender HDFC Bank has allotted 2.55 crore shares worth over Rs 1,680 crore to employees and FMCG major ITC has allotted 3.78 crore shares (Rs 1,104.89 crore) to their respective employees.
Among those leading the pack, housing finance giant HDFC has also given 1.14 crore shares (Rs 916.67 crore) and engineering and infrastructure conglomerate L&T has allotted 29.87 lakh shares (Rs 428.50 crore), data compiled from stock exchange filings show.
Most of the listed companies have Employee Stock Option Plans under which employees receive the right to purchase a
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