State-owned Bharat Petroleum Corp Ltd (BPCL) has provided its staff inventory choices at one-third of the market worth as the corporate appears to reward employees forward of its privatisation.
The board of BPCL on Friday “approved the proposed Employee Stock Purchase Scheme (ESPS) to the specified employees through the trust mechanism, subject to the approval of the shareholders”, the corporate mentioned in a regulatory submitting.
While BPCL didn’t give particulars, a supply with direct data of the event mentioned ‘BPCL Trust for Investment in Shares’ holds round 9.33% stake of the corporate’s paid-up share capital.
Of this, 2% will likely be provided to staff at one-third the worth of BPCL scrip within the previous six months, he mentioned.
There will likely be no change in authorities’s shareholding within the firm.
The authorities is promoting all of its 52.98% stake in BPCL to a strategic investor. Expression of Interest (EoI) for the privatisation 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 corporate mentioned within the regulatory submitting.
The supply mentioned the variety of shares to be provided below the ESPS will rely on the grade of the worker and even administrators on the corporate board could be eligible for the provide.
There will likely be a one-year lock-in interval for the shares that staff purchase below ESPS, he added.
BPCL, he mentioned, has not but selected what to do with the residual 7.33% stake held by the Trust.
‘BPCL Trust for Investment in Shares’ is an unbiased entity, of which the corporate BPCL is a beneficiary.
ESPS will likely be executed in strict compliance of the SEBI norms, the particular person mentioned including that BPCL will search shareholders’ approval for the scheme at its upcoming annual basic assembly (AGM) later this month.
After shareholders approve, BPCL will make a former provide to staff.
BPCL closed at ₹403.40 per share on the BSE on Friday.
Last month, it provided a voluntary retirement scheme (VRS) to a few of its staff as a part of the deliberate privatisation.
About 1,200 staff are prone to be given VRS, the supply mentioned.
BPCL stake sale is essential to assembly authorities’s report ₹2.1 lakh crore divestment goal for the present fiscal.