Shriram Asset Management Grants 30,000 Stock Options to Employees, Allots 22,620 Shares

Shriram Asset Management Company Limited (SAMCL) has taken significant steps in employee compensation and ownership, as revealed in recent corporate actions. The company has approved a new stock option grant and completed an allotment of shares under its existing Employee Stock Option Plan (ESOP).

New Stock Option Grant

The Nomination and Remuneration Committee of SAMCL has approved the grant of 30,000 stock options to eligible employees under the company's Employee Stock Option Plan, 2022. Key details of this grant include:

Aspect	Details
Number of Options	30,000
Conversion Ratio	1 option : 1 equity share
Face Value	Rs. 10.00 per share
Exercise Price	Rs. 204.90 per share
Vesting Schedule	3 years (30:30:40 ratio)
Exercise Period	10 years from vesting date

This move aims to align employee interests with those of the company and its shareholders, potentially enhancing long-term commitment and performance.

Recent Share Allotment

In a separate but related development, SAMCL has also completed an allotment of shares under its ESOP 2022. The ESOP Allotment Committee approved the issuance of 22,620 equity shares to six employees who exercised their stock options. Notable points of this allotment include:

Aspect	Details
Shares Allotted	22,620
Face Value	Rs. 10.00 per share
Number of Employees	6
Exercise Prices	Rs. 200.00 for 18,660 shares Rs. 217.44 for 3,960 shares

Impact on Share Capital

Following this allotment, SAMCL's paid-up share capital has increased from Rs. 16,90,57,640.00 to Rs. 16,92,83,840.00. The total number of issued shares now stands at 1,69,28,384.

Compliance and Transparency

Both the new grant and the share allotment comply with the Securities and Exchange Board of India (SEBI) regulations, including the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. This adherence to regulatory requirements underscores SAMCL's commitment to transparency and good corporate governance practices.

These actions by Shriram Asset Management Company Limited reflect a strategic approach to employee compensation, aiming to foster a sense of ownership and align employee interests with the company's long-term goals. As the company continues to implement its ESOP, it will be interesting to observe the impact on employee retention, motivation, and overall company performance in the asset management sector.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+9.83%	+20.06%	+8.76%	+2.50%	+9.05%	+875.22%

Shriram Asset Management Company has reported a significant decline in its consolidated net profit for the second quarter, along with the announcement of a Voluntary Retirement Scheme (VRS) and dividend payouts. The company also disclosed revised family pension benefits, impacting its financial liabilities.

Financial Performance

Shriram Asset Management Company's financial results for Q2 and H1 are summarized in the following table:

Metric	Q2	Q2 Previous Year	Change (%)	H1	H1 Previous Year	Change (%)
Consolidated Net Profit (₹ crore)	113.00	239.00	-53.00	-	-	-
Revenue (₹ crore)	418.60	538.40	-22.30	-	-	-
Standalone Net Profit (₹ crore)	-	-	-	382.34	387.01	-1.20
Revenue from Operations (₹ crore)	-	-	-	827.10	803.20	3.00

The company experienced a sharp 53% decline in consolidated net profit for Q2, dropping to ₹113.00 crore from ₹239.00 crore in the same quarter of the previous year. Revenue also saw a significant decrease of 22.30%, falling to ₹418.60 crore from ₹538.40 crore.

For the half-year period, Shriram Asset Management Company's standalone performance showed more stability. The standalone net profit remained nearly flat at ₹382.34 crore compared to ₹387.01 crore in the previous year, representing a marginal decrease of 1.20%. Revenue from operations for the half-year saw a modest increase of 3%, rising to ₹827.10 crore from ₹803.20 crore.

Corporate Actions

Voluntary Retirement Scheme (VRS)

Shriram Asset Management Company has launched a Voluntary Retirement Scheme, effective from October 1. Employees have the opportunity to apply for this scheme until October 31. This move could potentially impact the company's workforce structure and operational costs in the coming quarters.

Revised Family Pension Benefits

The Board of Directors has approved revised family pension benefits for employees. This decision has created an incremental liability of ₹24.91 crore for the company, which may affect its financial statements in the near term.

Dividend Announcement

Shareholders of Shriram Asset Management Company have approved two types of dividends:

A final dividend of ₹26 per equity share
A special dividend of ₹22 per equity share

These dividend payouts demonstrate the company's commitment to returning value to its shareholders, despite the challenging quarter.

Market Implications

The significant drop in quarterly profit and revenue may raise concerns among investors about Shriram Asset Management Company's short-term performance. However, the relatively stable half-yearly results suggest that the company is managing to maintain its overall financial position in a challenging market environment.

The introduction of the VRS could be seen as a strategic move to optimize the company's workforce and potentially reduce long-term operational costs. Meanwhile, the revision of family pension benefits, while creating an immediate financial liability, may enhance employee satisfaction and retention in the long run.

The generous dividend payout, totaling ₹48 per share (including both final and special dividends), may help in maintaining investor confidence despite the profit decline.

As the asset management industry continues to evolve, Shriram Asset Management Company's actions indicate a focus on both operational efficiency and shareholder returns. Investors and market analysts will likely keep a close watch on how these strategic decisions impact the company's performance in the coming quarters.