SBFC Finance Limited , a prominent player in the Indian financial services sector, has taken a significant step towards enhancing employee ownership and engagement. The company recently announced the allotment of 26,51,417 equity shares to its employees under seven different employee stock option schemes (ESOP).

Detailed Breakdown of Share Allotment

The allotment spans across various ESOP policies implemented by SBFC Finance. Here's a detailed breakdown of the allotment:

Impact on Share Capital

This strategic move has led to an increase in SBFC Finance's issued and paid-up equity share capital. The company's share capital has risen from 1,09,31,97,401 equity shares, totaling ₹10,93,19,74,010, to 1,09,58,48,818 equity shares, amounting to ₹10,95,84,88,180. All newly allotted shares carry a face value of ₹10 each.

Implications for Employees and the Company

The diverse range of exercise prices across different ESOP schemes, varying from ₹21.45 to ₹87.33, suggests a strategic approach to employee incentivization. This structure may be designed to reward long-term employees while also attracting and retaining new talent.

By implementing these ESOP schemes, SBFC Finance aims to align employee interests with those of the company and its shareholders. This move may potentially boost employee morale, productivity, and loyalty, which could translate into improved company performance in the long run.

Market Implications

The allotment of these additional shares represents about 0.24% of the total issued shares post-allotment. SBFC Finance's commitment to employee welfare and long-term value creation is evident through this initiative.

SBFC Finance's shares are listed on both the BSE Limited and the National Stock Exchange of India Limited. The newly allotted shares will rank pari-passu with the existing equity shares of the company in all respects.

As SBFC Finance continues to strengthen its position in the financial services sector, this move underscores its focus on human capital as a key driver of growth and success.

SBFC Finance Limited , a leading non-banking financial company (NBFC), has announced significant developments in its corporate structure and employee incentive programs. The company's Board of Directors has approved a new stock option policy and reported key leadership changes, signaling a strategic move to strengthen its position in the financial services sector.

New Stock Option Policy

The Board has given the green light to the 'SBFC Stock Option Policy 2025 – I', creating a pool of 1.21 crore employee stock options. This decision, subject to shareholder approval through postal ballot, aligns with the company's efforts to attract and retain top talent. The exercise price for these options will be determined based on the average closing price of the company's shares over the five trading days preceding the grant date.

Leadership Transitions

SBFC Finance has experienced significant changes in its leadership team:

1. Resignation of Internal Audit Head: Mr. Shanesh Jain, Head of Internal Audit, has stepped down from his position, citing relocation to the UAE for personal reasons.

2. Departure of Credit Head: Mr. Viney Vaid, who served as Head of Credit for eight years, has resigned due to personal reasons.

3. New Chief Credit Officer: To fill the vacancy in credit leadership, the company has appointed Mr. Sreenivas Mylavarapu as the new Chief Credit Officer.

Profile of New Chief Credit Officer

Mr. Sreenivas Mylavarapu brings a wealth of experience to SBFC Finance:

• Over 29 years of banking experience across retail, MSME, agriculture, and microfinance segments
• Previously served as General Manager & Business Head for Retail, Agri, and MSME Advances at Karnataka Bank Ltd.
• Held senior leadership roles at Aditya Birla Housing Finance, Kotak Mahindra Bank, IDBI Bank, and State Bank of Hyderabad
• Known for expertise in business growth, credit management, and operational excellence
• Skilled in both secured and unsecured lending

Financial Performance Highlights

While the article focuses on corporate updates, it's worth noting some key financial metrics from SBFC Finance's recent performance:

These figures indicate robust growth and improved operational efficiency for SBFC Finance.

Conclusion

The approval of the new stock option policy and the strategic leadership changes demonstrate SBFC Finance's commitment to strengthening its organizational structure and incentivizing its workforce. With the appointment of Mr. Mylavarapu as Chief Credit Officer, the company is poised to leverage his extensive experience in the banking and finance sector. These developments, coupled with the company's strong financial performance, position SBFC Finance for continued growth in the competitive NBFC landscape.