Bandhan Bank rewards employees with stock options. 5 key details you should know
4 min read 20 Feb 2023, 06:04 AM ISTBandhan Bank has granted stock options to employees at a price of ₹242.10 apiece
PremiumBandhan Bank stock options: The Nomination and Remuneration Committee of Bandhan Bank has granted stock options to its employees at a grant price of ₹242.10 per option. Total stock options available for grant to eligible employees are 40,500 Bandhan Bank shares. The grant price of ₹242.10 apiece has been fixed as per the close price on Thursday last week. The private lender informed Indian bourses about the grant in latest exchange communication last week.
Informing Indian bourses about stock options grant, Bandhan Bank said, "Pursuant to the applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘SEBI LODR’), we wish to inform that the Nomination and Remuneration Committee of the Bank has, on February 17, 2023, granted 40,500 equity stock options of the face value of Rs. 10 each (‘ESOPs’), at the grant price of Rs. 242.10 (Rupees Two Hundred Forty Two and Ten Paisa only) per option to the eligible employees of the Bank."
Here we list out 5 important details that you should know:
1] Brief details of options granted: 40,500 ESOPs granted by the Nomination and Remuneration Committee of the Bank to the eligible employee of the Bank under ‘Bandhan Bank Employee Stock Option Plan - Series 1’ – Tranche 5.
2] Total number of shares covered by these options: 40,500 equity shares of Rs. 10 each of the Bank. Each stock option carries the right to apply for and be allotted 1 (one) equity share of face value of Rs. 10 each of the Bank.
3] Pricing formula: Pursuant to provisions of the SEBI SBEBSE and the ESOP Series 1, the ESOPs have been granted at the latest available closing price prevailing on the National Stock Exchange of India Limited being the Stock Exchange which recorded the highest trading volumes in the equity shares of the Bank on Thursday, February 16, 2023, i.e., being the previous trading day immediately preceding the date on which the grant of options has been approved by the Nomination and Remuneration Committee.
4] Time within which option may be exercised: The exercise period shall be a maximum of five years from the date of respective vesting of Options.
5] Options vested: The ESOPs granted above shall vest as under:
a) 25% of the options granted shall vest on completion of one year from the date of grant;
b) 25% of the options granted shall vest on completion of two years from the date of grant;
c) 25% of the options granted shall vest on completion of three years from the date of grant; and
d) 25% of the options granted shall vest on completion of four years from the date of grant.
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