KPIT Technologies offers 5,000 stock options to eligible employees

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Auto industry-focused KPIT Technologies Ltd on Friday (April 26) said that its Nomination and Remuneration Committee has approved the grant of 5,000 employee stock options under the ‘KPIT Technologies Ltd – Employee Stock Option Scheme 2019A’ (ESOS 2019A).

“This is to inform you that the Nomination and Remuneration (HR) Committee of the Board of Directors of the Company (“Committee”) in its meeting held today i.e. on April 26, 2024, has considered and approved the following business: Grant of 5000 Options to the eligible employees covered under the KPIT Technologies Ltd – Employee Stock Option Scheme 2019A,” the company said in a stock exchange filing.

The grant of options entails several key details outlined by the committee. Each eligible employee will be granted 5,000 options. The exercise price per option will be determined by the committee, ensuring it is not less than the face value of the shares, which stands at ₹ 10 per share as of the date of the grant.

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Employees will have the opportunity to exercise their vested options within a period of five years from the date of vesting. Options will vest after a minimum of one year but not later than three years from the date of grant, in accordance with the ESOS 2019A Scheme.

Notably, KPIT Technologies’ shareholders had previously approved an amendment to the ESOS 2019A Scheme on June 30, 2020. The amendment modified the exercise price per option from the “market price per share as on date of grant” to “not less than face value of the shares as on date of grant of option,” as determined by the Nomination and Remuneration Committee.

Consequently, the options will be granted at the modified exercise price of ₹10 per option, ensuring consistency with the revised scheme.

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Shares of KPIT Technologies Ltd ended at ₹1,415.50, up by ₹41.45, or 3.02%, on the BSE.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow