L&T Finance Holdings Limited
Information required to be disclosed under Regulation 14 of Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021, as amended from time to time.
- Relevant disclosures in accordance with 'Indian Accounting Refer Note No. 1 of
Standard 102- Share based payment' as notified by the Ministry Annexure A of Corporate Affairs including the 'Guidance note on accounting
for employee share based payments'.
- Diluted EPS on issue of shares pursuant to all the schemes Refer Note No. 2 of
covered under the regulations shall be disclosed in accordance | Annexure A | ||
with 'Indian Accounting Standard 33 - Earning per share' as | |||
notified by the Ministry of Corporate Affairs. | |||
C. Details related to ESOS | |||
Sr. Particulars | ESOP Scheme 2010 | ESOP Scheme 2013 | |
No. |
- A description of each ESOP that existed at any time during the year, including the general terms and conditions of each ESOP, including -
a) Date | of | November 29, 2010 | April 4, 2014 | ||||
shareholders' | |||||||
approval | |||||||
b) Total | number of | 3,42,95,232 | 5,15,84,661 | ||||
options approved under | |||||||
ESOP | |||||||
c) Vesting requirements | Vesting will commence one | Vesting will | commence | two | |||
year after the date of grant at | years or one year after the date | ||||||
the rates given below or at | of grant and may extend up to | ||||||
such other rates as may be | four years from the date of | ||||||
fixed by the Nomination & | grant as the case may be. The | ||||||
Remuneration | Committee | percentage | of vesting | each | |||
and may extend upto four | year shall be at the rates | ||||||
years from the date of grant, | decided by the Management. | ||||||
unless otherwise | varied in | ||||||
accordance with the Rules. | |||||||
d) Exercise price or | The exercise price for the purposes of the grant of Stock Options | ||||||
pricing formula | will be as per terms & conditions decided by the Board and / or | ||||||
Nomination & Remuneration Committee at the time of respective | |||||||
grant of Stock Options, but at a price not below the face value of | |||||||
the equity share and not exceeding the market price as per the | |||||||
SEBI Regulations. |
e) Maximum term of | The Exercise Period would be | Eight years (96 months) from | ||
options granted | seven years (84 months) from | the date of grant or Three years | ||
the date of grant or 3 years | (36 months) from the date of | |||
(36 months) from the date of | retirement/death whichever is | |||
retirement / death, whichever | earlier. | |||
is earlier. | ||||
f) Source of shares | Primary | Primary | ||
(primary, secondary or | ||||
combination) | ||||
g) Variation in terms | N.A. | N.A. | ||
of options | ||||
(ii) Method used to account for | Fair Value | |||
ESOP - Intrinsic or fair | ||||
value. |
(iv) Option movement during the year (For each ESOS):
Particulars | ESOP Scheme | ESOP Scheme | |||
2010 | 2013 | ||||
Number of options outstanding at the beginning | 9,48,250 | 2,16,22,255 | |||
of the period | |||||
Number of options granted during the year | - | 8,21,880 | |||
Number of options forfeited / lapsed during the | 1,88,000 | 8x0,02,047 | |||
year | |||||
Number of options vested during the year | 1,37,500 | 75,04,495 | |||
Number of options exercised during the year | 1,96,500 | 54,39,129 | |||
Number of shares arising as a result of exercise | 1,96,500 | 54,39,129 | |||
of options | |||||
Money realized by exercise of options (₹), if | 68,50,305 | 9,60,64,035 | |||
scheme is implemented directly by the | |||||
company | |||||
Loan repaid by the Trust during the year from | N.A. | N.A. | |||
exercise price received | |||||
Number of options outstanding at the end of | 5,63,750 | 2,75,38,744 | |||
the year | |||||
Number of options exercisable at the end of the | 4,85,000 | 1,83,45,892 | |||
year | Weighted-average | ||||
(v) Weighted-average exercise prices and weighted- | exercise | prices - | |||
average fair values of options shall be disclosed | ₹ 10 | ||||
separately for options whose exercise price either | |||||
equals or exceeds or is less than the market price | Weighted-average | fair | values - | ||
of the stock. | ₹ 69.48 |
- Employee wise details (name of employee, Nil designation, number of options granted during the year, exercise price) of options granted to -
a) Senior managerial personnel; | None |
b) any other employee who receives a grant in | None |
any one year of option amounting to 5% or | |
more of option granted during that year: and | |
c) identified employees who were granted option, | None |
during any one year, equal to or exceeding 1% | |
of the issued capital (excluding outstanding | |
warrants and conversions) of the company at | |
the time of grant. |
*Options lapsed during the year on account of resignation of the employee
- A description of the method and significant Weighted average exercise price - assumptions used during the year to estimate the ₹ 10 Weighted average share price -
fair value of options including the following | ₹ 79.87 Expected volatility - Calculated |
information: | by using the closing market prices of the |
a) the weighted-average values of share price, | Company's Shares during the last one |
exercise price, expected volatility, expected | year. |
option life, expected dividends, the risk-free | Expected life - Full life of the option is the |
interest rate and any other inputs to the model; | period up to which it can be exercised. |
Expected dividends - Yield has been | |
calculated on the basis of dividend yield | |
of the financial year. | |
Risk-free interest rate - This is the rate | |
offered in the market with virtually zero | |
risk. Normally the yield of Government | |
backed securities with maturity similar to | |
that of the option is taken into | |
consideration. |
- the method used and the assumptions made to incorporate the effects of expected early
exercise; | As decided by the Management in case of |
Retirement and Death of an employee. |
- how expected volatility was determined, including an explanation of the extent to which
expected volatility was based on historical Expected volatility is based on the
volatility; and | historical volatility of the Company shares |
price applicable to the expected life of | |
each option. |
whether and how any other features of the option grant were incorporated into the measurement of fair value, such as a market condition.
The price of underlying shares in market at the time of option grant - closing market price, on previous trading day on which the options are granted, on the Stock Exchange where the volume of shares traded is more.
Disclosures in respect of grants made in three years prior to IPO under each ESOP
Until all options granted in the three years prior to the Not Applicable IPO have been exercised or have lapsed, disclosures of
the information specified above in respect of such options shall also be made.
Annexure A
1. Stock option scheme
- The Company has formulated Employee Stock Option Schemes 2010 (ESOP Scheme- 2010) and 2013 (ESOP Scheme 2013). The grant of options to the employees under the stock option schemes is on the basis of their performance and other eligibility criteria. The options allotted under the scheme 2010 are vested over a period of four years in the ratio of 15%, 20%, 30% and 35% respectively from the end of 12 months from the date of grant, subject to the discretion of the management and fulfillment of certain conditions. The options granted under the scheme 2013 are vested in a graded manner over a period of four years with 0%, 33%, 33% and 34% of grants vesting each year, commencing from the end of 24 months from the date of grant or w.e.f. July 10, 2019 vested in a graded manner over a period of four years with 25%, 25%, 25% and 25% of grants vesting each year, commencing from the end of 12 months from the date of grant.
- Options allotted under scheme 2010 can be exercised anytime within a period of 7 years from the date of grant and would be settled by way of equity. The option granted under scheme 2013 can be exercised anytime within a period of 8 years from the date of grant. Management has discretion to modify the exercise period.
- The option granted under scheme 2010 is at exercise price of ₹ 44.20. The option granted under scheme 2013 can be exercised either at market price which was the last closing price on National stock exchange preceding the date of grant or w.e.f. July 10, 2019 ₹ 10 respectively.
- During the year ended March 31, 2023, 1,96,500 and 54,39,129 options were allotted under the scheme 2010 and 2013 respectively.
- The details of the grants are summarised below:
Sr. | Particulars | ESOP Scheme 2010 | ESOP Scheme 2013 | ||
No. | 2022-23 | 2021-22 | 2022-23 | 2021-22 | |
1 | Options granted and outstanding | 9,48,250 | 19,28,500 | 4,01,58,040 | 3,98,32,101 |
at the beginning of the year | |||||
8,21,880 | |||||
2 | Options granted during the year | - | - | 1,07,89,685 | |
3 | Options cancelled/ lapsed during | 1,88,000 | 6,63,250 | 80,02,047 | 61,90,962 |
the year | |||||
54,39,129 | |||||
4 | Options exercised during the | 1,96,500 | 3,17,000 | 42,72,784 | |
year | |||||
5 Options granted and outstanding at the end of the year of which -
- Options vested | 4,85,000 | 7,19,000 | 1,83,45,892 | 2,16,22,255 |
- Options yet to vest | 78,750 | 2,29,250 | 91,92,852 | 1,85,35,785 |
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L&T Finance Holdings Limited published this content on 01 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 July 2023 07:45:07 UTC.