Realty and infrastructure major Jaiprakash Associates today said it would offer 1.25 crore shares to its employees at a price of Rs 60 per share, resulting into a huge total discount of about Rs 200 crore to the current market price.
The company's shares are currently trading at about Rs 220 per share, resulting in a discount of about Rs 160 per share for the proposed price of Rs 60 a share for the employee stock purchase scheme.
While the employees would fork out close to Rs 75 crore under the ESOP plan for 1.25 crore shares, these many shares are worth close to Rs 275 crore at the current market price.
Jaiprakash Associates informed the stock exchange today that its board of directors, at a meeting held on Saturday, "approved the Employee Stock Purchase Scheme, as recommended by the Compensation Committee, for issue and allotment of 1,25,00,000 Equity Shares of Rs 2 each at a price of Rs 60 per share to the employees of the company and its subsidiaries."
The scheme is subject to shareholders approval.
The firm today posted a consolidated net profit of Rs 420.25 crore for the year ended March 31, 2009 as against Rs 676.8 crore last year.
The company today witnessed heavy volatility on bourses. It witnessed a day's high of Rs 236, but soon lost ground and was trading at Rs 210.30, down 9 per cent on the BSE.