HDFC To Double Number Of ESOS, Halve Grant Price

Mumbai June 27: | Updated: Jun 28 2003, 05:30am hrs
The compensation committee of HDFC had decided to double the number of employees stock options (ESOS) vested but not exercised, that are granted on October 17, 2002, and halve the grant price to take into account the impact of the issue of bonus shares.

The grant price in respect of options granted on December 15, 1999, which were not exercised as on November 30, 2002, was reduced to Rs 128.50 per option and the grant price of options granted in October 2002, was reduced to Rs 302 per option.

At the extra-ordinary general meeting of HDFC held on December 2002, the shareholders approved the issure of bonus shares to the existing shareholders in the ratio of one equity share of Rs 10 each for one equity share of Rs 10 each held.

The shareholders also authorised the compensation committee to reduce the grant price and increasd the number of options unexercised, so that the loss to the employees due to bonus shares not being issued on unexercised options is neutralised.

The Securities and Exchange Board of India (Sebi) empowers the compensation committee to make fair and reasonable adjustment to the number of options and the exercise price in case of issue of bonus shares.

As on date, under ESOS 1999 options in respect of 39,006,703 equity shares have been vested and options in respect of 33,39,779 equity shares have been exercised. The number of shares arising as a result of the exercise of options aggregated to 33,39,779.

The money realised by exercise of options amounted to Rs 79.50 crores.

As a result of exercise of options and the consequent allotment of the shares the paid-up capi tal of HDFC has increased by Rs 3.34 crore.

Under ESOS 1999, options in respect of 1,10,464 equity have lapsed and under ESOS 2002 options in respect of 4,485 shares have lapsed.

Of the options lapsed under ESOS 1999, options in respect of 1,009,088 sahres have been granted afresh under ESOS 2002.

The dilute earnings per share pursuant to issue of shares on exercise of options is Rs 28.08.