Accounting, Disclosure, Fair value Certification of ESOPs in IPO context

A small-cap company, a prominent name, in the manufacturing sector intended to grant ESOPs prior to its IPO within a strict time limit.

The task was given to us (arthedge) right from conceptualization to grant/ implementation. This unavoidably involved not only the grant advisory, scheme drafting, employee communication, Red-herring prospectus disclosure, discussion with the Auditors, but also that the grant advisory should be based on accounting cost efficiency and its potential impact to future PAT/ EPS/ Valuation among other things.

It required us to compute separate Black & Scholes values corresponding to each set of alternative grant parameters. As the simulations are deliberated and the best scenario is freezed, the next work was our certification as to Fair value, accounting cost amortization and detailed disclosures in the prospectus.

It was a successful listing during choppy times in stock market.