eClerx Services Vests 4,98,610 Employee Stock Options Under ESOP Scheme 2022
eClerx Services Limited's Nomination and Remuneration Committee approved the vesting of 4,98,610 employee stock options on May 13, 2026, under the Employee Stock Option Scheme 2022. The options were originally granted on May 25, 2023, at an exercise price of Rs. 709.91 per share, out of a total grant of 12,56,270 options. The vested options are exercisable within 3 years from the date of vesting, with the scheme administered through an ESOP Trust authorised to acquire shares from the secondary market. The disclosure was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
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The Nomination and Remuneration Committee of eClerx Services Limited approved the vesting of 4,98,610 employee stock options on May 13, 2026. These options were originally granted on May 25, 2023, to eligible employees of the company and its subsidiaries under the Employee Stock Option Scheme 2022. The disclosure was made pursuant to Regulation 30 read with Schedule III Part B of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Key Details of the ESOP Vesting
The following table summarises the key parameters of the options granted and vested under the Employee Stock Option Scheme 2022:
| Parameter: | Details |
|---|---|
| Options Granted: | 12,56,270 equity shares of Rs. 10/- each |
| Options Vested: | 4,98,610 equity shares of Rs. 10/- each |
| Exercise Price: | Rs. 709.91 per share |
| Date of Grant: | May 25, 2023 |
| Date of Vesting Approval: | May 13, 2026 |
| Exercise Period: | 3 years from the date of vesting |
| Scheme: | Employee Stock Option Scheme 2022 |
Pricing Formula
The exercise price for these options was determined as the lower of the following two methods:
- The latest available closing market price (at the stock exchange with the highest trading volume on the relevant date) on the date prior to the date on which the Remuneration Committee finalised the specific number of options to be granted; or
- The average of the two weeks' high and low price of the share preceding the date of grant of option on the stock exchange on which the shares of the company are listed.
Based on this formula, the options were granted at an exercise price of Rs. 709.91 per share.
Scheme Administration and Significant Terms
The Employee Stock Option Scheme 2022 is in compliance with the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. The scheme is administered via an ESOP Trust, which is authorised to purchase shares from the secondary market to facilitate ESOP exercises.
Key terms governing the vested options include:
- Exercise window: Vested options can be exercised by employees within 3 years from the date of vesting, between the date of vesting and the exercise expiry date as mentioned in the letter of grant.
- Resignation/Termination: In the event of resignation or termination, all unvested options on the date of submission of resignation shall expire and stand terminated with immediate effect. All vested options as on that date shall be exercisable by the employee before the last working day with the company.
- Abandonment of employment: In the event of abandonment of employment without the company's consent, all options granted, including vested options not yet exercised, shall stand terminated with immediate effect.
- Corporate actions: The Nomination and Remuneration Committee is authorised to make fair and reasonable adjustments to the exercise price and/or the number of options that may be granted or vested in the employees in the event of any corporate action.
The intimation was submitted by Pratik Bhanushali, VP-Legal & Company Secretary of eClerx Services Limited, in compliance with SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023.
Historical Stock Returns for eClerx Services
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.74% | -5.43% | +3.91% | -31.50% | +9.67% | +270.28% |
How might the exercise of 4,98,610 vested options over the next 3 years impact eClerx Services' share price and equity dilution, given the current market price versus the Rs. 709.91 exercise price?
What does the vesting of approximately 40% of originally granted options suggest about employee retention and attrition trends at eClerx Services since May 2023?
How will the ESOP Trust's secondary market share purchases to facilitate option exercises affect eClerx's stock liquidity and trading volumes going forward?
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