RELIANCE ALLOTS 2.86 LAKH SHARES TO EMPLOYEES

Mukesh Ambani led business conglomerate Reliance Industries Limited (RIL) had decided to allot 2.86 lakh shares to the employees under employees stock option scheme (ESOP). RIL said in a Bombay Stock Exchange (BSE) filing that the company has allotted 2, 86,932 equity shares of Rs 10 each, on January 03, 2011, in agreement to the ESOP scheme of the company.
The value of these shares in works out to be roughly around Rs. 30.81 crore based on the day’s closing price of Rs. 1,073.90.
In November, 2010, RIL head Mukesh Ambani had announced that the company would allot 2.25 lakh shares to its employees in near future. The company had earlier issued 2.18 lakh shares to its employees in October, 2010.
This is one of the many ESOPs Reliance has issued to its employees in all the years of its functioning. According to industry estimates, one of the largest ever employee stock option plan for the manufacturing industry in India was carried by Reliance in the year 2007, when it allotted shares worth nearly Rs. 4000 crore in ESOP.
ESOP is a call option on the common stock of a company, issued as a form of non-cash compensation, usually allocated in the form of company shares. It is common activity in many public sector companies and is usually restricted to the top management.

Reliance Industries Ltd has a history of excellent relationship between top and junior management. The employees are a dedicated force working towards the common cause of commitment to excellence and it is through these gestures of appreciation that they find their standing in the company a rewarding and meaningful one.

Reliance has had a successful run in the stock exchange in the previous financial quarter. With mergers and acquisitions lined up and future prospects for expansion and development on the cards, this move by Reliance is a thoughtful one to reinforce in its team a sense of incentive and ownership. Reliance currently plans to foster development and expansion of its existing plants and refineries and also put focus on transforming their business modules as per global standards.

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