The HDFC Bank has expressed confidence that its Employee Share Option Plan established some years ago, now largely subscribed, will be concluded by the end of this year with eight employees entitled to take up 102,668 shares purchasing their entitlements by the year end.
"The HDFC Bank is confident that those remaining eight employees will also purchase their entitlement before Dec. 31, 2016 failing which the Trustee will take steps to sell the remaining shares in the market and windup the ESOP," Mr. K.T.D.D. De Silva, Secretary to the Bank/Board said in a stock exchange filing.
The ESOP was established for the benefit of employees with the approval of the CSE. In terms of the plan, Legaline Trustee Service (Pvt) Ltd., acting as trustee for employees of the HDFC Bank subscribed for 348,552 ordinary shares of Rs. 100 each at Rs. 143 per share by obtaining a finance facility from HDFC Bank.
These shares, with the cost associated thereon, were allocated in favour of the employees on a pre-determined basis. Following the share split, the number of shares increased tenfold to 3,485,520.
Employees were given the option to purchase the shares within a three year period after a one year retention period by paying the cost and interest thereon. Since the employees did not pay for the shares allocated to them within the stipulated time due to market conditions, the scheme was amended with CSE approval to extend the time period till Dec. 31, 2016.
Thereafter, the 253 employees were offered the 3,485,520 shares with the option to pay for their entitlement on the same basis as before Dec. 31, 2016. As of Jan. 7, only 102,668 shares remain for purchase by eight employees, the filing said.
HDFC which did not disclose the price at which employees could take their entitlements expressed confidence that the remaining shares would be taken up.
On Friday the HDFC Bank share closed flat on the CSE at Rs. 65 with 4,350 shares traded between Rs. 64.50 and Rs. 66.50.
www.island.lk
The ESOP was established for the benefit of employees with the approval of the CSE. In terms of the plan, Legaline Trustee Service (Pvt) Ltd., acting as trustee for employees of the HDFC Bank subscribed for 348,552 ordinary shares of Rs. 100 each at Rs. 143 per share by obtaining a finance facility from HDFC Bank.
These shares, with the cost associated thereon, were allocated in favour of the employees on a pre-determined basis. Following the share split, the number of shares increased tenfold to 3,485,520.
Employees were given the option to purchase the shares within a three year period after a one year retention period by paying the cost and interest thereon. Since the employees did not pay for the shares allocated to them within the stipulated time due to market conditions, the scheme was amended with CSE approval to extend the time period till Dec. 31, 2016.
Thereafter, the 253 employees were offered the 3,485,520 shares with the option to pay for their entitlement on the same basis as before Dec. 31, 2016. As of Jan. 7, only 102,668 shares remain for purchase by eight employees, the filing said.
HDFC which did not disclose the price at which employees could take their entitlements expressed confidence that the remaining shares would be taken up.
On Friday the HDFC Bank share closed flat on the CSE at Rs. 65 with 4,350 shares traded between Rs. 64.50 and Rs. 66.50.
www.island.lk
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