RCom to issue 1.75 crore shares under ESOP

Anil Ambani-promoted Reliance Communications (RCom) today said it would issue 1.75 crore shares under Employees Stock Options (ESOP) to 20,000 staff members of the company and its subsidiaries.

If one goes by Reliance Communications' closing share price of Rs 543.35 on the Bombay Stock Exchange on March 7, the issue of ESOPs would amount to about Rs 950 crore.

Claiming that it is the largest ESOP rollout by any Indian Telecom Service Provider, Reliance Communications said in a release that the initiative is in line with the groups' policy to create value for stakeholders, external and internal.

The company said each option would be exercisable into equal number of fully paid-up equity shares of Reliance Communications.

"The options would be vested at the end of one year from the date of grant and shall be eligible for exercise up to a period of nine years from the date of vesting," the company said.

The Employee Stock Option Scheme recognizes the efforts of our employees and aims to reward them for contributing towards the transformation of Reliance Communications as the most profitable Indian Telecom Enterprise, and among Asias Top 5 Most Valuable companies within a short span of two years, Reliance Communications Chairman Anil Ambani said.

The company has undergone extensive research based on intricate scientific models to formulate an innovative 3-Tier Model that would consider multiple parameters including number of years in the company, role, contribution, experience amongst others.

The shareholders of the company had passed the resolution of grant of securities under the ESOP scheme last year.