ESOP implementation on impending IPO

Some companies use to take time in introduction or implementation of ESOPs in spite of their conviction that ESOP is a must in their own facts and circumstances.

Out of many cases, one such case was a leading company in manufacturing sector, which saw a nice listing in recent choppy times.

The company engaged us (ArthEdge) with a requirement of time bound ESOP implementation with the finest quality of ESOP grant structure with complete analysis of employee benefit, accounting, tax advisory with a top priority for the SEBI compliance in letter and spirit.

The assignment was fulfilled starting with noting of the primary objective of ESOPs, appropriate benchmarking, scenario building for individual ESOP allocation within the overall pool acceptability, accounting cost & its optimization basis different scenarios of grant allocation, optimization for corporate tax saving, impact analysis on future PAT/ EPS/ Valuation, ending with certification of fair value (Black & Scholes value) of ESOPs, and Red-herring Prospectus disclosure. This included discussion with the management and their auditors.

There was a happy conclusion with a nice listing.