|
43 Share based payments (Employee stock option plans) |
The Board of Directors at its meeting held on 30 January 2019, approved an Employee Stock Options Scheme (‘ESOS’). Pursuant to the scheme stock options up to a maximum of 0.17% of the then issued equity capital of the Company aggregating to 5,000,000 equity shares of the face value of ₹ 10 each can be issued in a manner provided in the SEBI (Share Based Employee Benefits) Regulations, 2014 as amended. The shareholders of the Company vide their special resolution passed through postal ballot on 11 March 2019 approved the issue of equity shares of the Company under one or more Employee Stock Option Scheme(s).
The Nomination and Remuneration Committee of the Company has approved the following grants to select senior level executives of the Company in accordance with the Stock Option Scheme. The details of grants made as of 31 March 2024 are given in below tables:
|
Particulars |
31 March 2024 |
|||||||
|
|
||||||||
|
Grant date |
17 May 2019 |
29 April 2021 |
27 April 2022 |
25 April 2023 |
||||
|
No. of options granted |
287,636 |
277,116 |
447,692 |
4,75,268 |
||||
|
Exercise price (₹) |
2,942.65 |
3,889.75 |
3,892.10 |
4,332.10 |
||||
|
Weighted average fair value (₹) |
827.52 |
1,091.44 |
959.75 |
1,143.72 |
||||
|
Total for all grants |
No. of options |
Range of fair value (₹) |
Weighted average fair value (₹) |
Weighted average remaining contractual life (years) |
||||
|
|
||||||||
|
Outstanding at the beginning of the year |
885,487 |
663.31 – 1248.65 |
903.50 |
5.67 |
||||
|
Granted during the year |
475,268 |
1016.22 – 1247.52 |
1,143.72 |
6.45 |
||||
|
Cancelled during the year |
26,580 |
663.31 – 1248.65 |
1,056.76 |
NA |
||||
|
Expired during the year |
– |
– |
– |
NA |
||||
|
Exercised during the year |
180,686 |
663.31 – 1034.73 |
874.35 |
NA |
||||
|
Outstanding at the end of the year |
1,153,489 |
663.31 – 1248.65 |
1,065.50 |
5.65 |
||||
|
Vested and exercisable at the end of the year |
247,178 |
663.31 – 1034.73 |
939.76 |
3.48 |
Method used for accounting for share based payment plan:
The Company has used the fair value method to account for the compensation cost of stock options to employees. The fair value of options used are estimated on the date of grant using the Black Scholes model. The key assumptions used in Black Scholes model for calculating fair value as on the date of grants are:
|
Grant date |
Risk Free interest rate |
Expected life |
Expected volatility |
Dividend yield |
Price of the underlying share in the market at the time of the option grant (₹) |
|||||
|
|
||||||||||
|
17 May 2019 |
6.88% to 7.26% |
3.51-6.51 years |
22.18% to 23.79% |
2.04% |
2,942.65 |
|||||
|
29 April 2021 |
5.18% to 6.08% |
3.51-6.51 years |
29.35% to 26.65% |
2.06% |
3,889.75 |
|||||
|
27 April 2022 |
6.15% to 6.82% |
3.51-6.51 years |
26.03% to 28.79% |
3.60% |
3,892.10 |
|||||
|
25 April 2023 |
6.87% to 7.00% |
3.51-6.51 years |
25.93% to 28.37% |
3.22% |
4,332.10 |
For the year ended 31 March 2024, the Company has accounted expense of ₹ 40.37 crore as employee benefit expenses (See note 26) on the aforesaid employee stock option plan (Previous year ₹ 29.82 crore). The balance in employee stock option outstanding account is ₹ 102.46 crore as of 31 March 2024 (Previous year ₹ 62.09 crore).