HDFC Bank Employees Will Get 6.5 Lakh Equity Shares Under ESOS; Share Prices Up By 4%
In a good news for all HDFC Bank employees, their management has decided to hand over 6.5 lakh equity shares to them.
This will be done under their ESOS or Employees Stock Options Schemes.
6.5 Lakh Equity Shares For All HDFC Bank Employees
HDFC Bank informed the stock exchange about this development: “We wish to inform you that the Bank has allotted today 657,200 equity shares to the employees of the Bank pursuant to exercise of options under its Employees Stock Options Schemes (ESOS),”
Via this exchange filiing announcement, HDFC Bank has said that after the ESOS distribution of shares, their paid up share capital has increased from 548,32,86,460 equity shares of Re 1 each to 548,39,43,660 equity shares of Re 1 each.
Via ESOS, HDFC Bank is giving a share of the organization to all the eligible employees, who will be allocated these equity shares.
There are stipulated rules and regulations attached with the allocation of equity shares, or ownership of the shares, which translates to ownership of the company.
With this allocation, HDFC employees can purchase a fixed number of shares at a pre-defined price, during the course of this scheme. A fixed number of years of experience is also required by the eligible employees, in order to purchase these shares.
Share Prices Up By 4%
Immediately after the announcement of this mega ESOS offer, share prices of HDFC Bank moved up the charts.
While HDFC Bank share prices increased by 0.67% yesterday, today, the share prices are up by 4% (April 29th), at Rs 970.05.
Allocation of equity shares to employees by HDFC Bank suggests their confidence and trust on their employees. And this translates to sound financial health of the bank.
In Q4 of FY2020, HDFC Bank reported 17.7% increase in standalone profits at Rs 6928 crore, against Rs 5885 crore standalone profits a year back.