Bharat Petroleum Corp Ltd (BPCL) has offered its employees stock options as part of reward ahead of its privatisation. The stock options are being issued to the staff at one-third of the market price. The board of BPCL on Friday "approved the proposed Employee Stock Purchase Scheme (ESPS) to the specified employees through the trust mechanism, subject to the approval of the shareholders," the company said in a regulatory filing.
"BPCL Trust for Investment in Shares" holds around 9.33 per cent stake of the company's paid-up share capital. Of this, 2 per cent will be offered to employees at one-third the price of BPCL scrip in the preceding six months, news agency PTI reported citing an unidentified source. The trust is an independent entity, of which the company BPCL is a beneficiary. The government's shareholding in the company will not see any change post this offering.
The government is selling all of its 52.98 per cent stake in BPCL to a strategic investor. Expression of Interest (EoI) for the privatisation is due on September 30.
"The Trust formed for the purpose shall purchase the aforesaid shares from the 'BPCL Trust for Investment in Shares' by way of secondary acquisition through the stock exchanges as per the SEBI (Share Based Employee Benefits) Regulations, 2014 and other applicable laws," the company said in the exchange filing.
Meanwhile, BPCL posted nearly 22 per cent rise in consolidated net profit at Rs 2,187.74 crore in April-June quarter of fiscal 2020-21 as against Rs 1,799.59 crore a year ago. Revenues from operations dipped 41.09 per cent to Rs 50,909.24 crore during the June quarter of FY21 from Rs 86,412.87 crore in the same period of last fiscal. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) fell to Rs 3,915.7 crore in the quarter under review.