INDIA: Jaypee emulates global giants with stock options - 14 June 2009

Rule
one of growing a business to global scale: don’t hold your operations
close to your heart. The rules for an entrepreneur to grow from nothing to Rs 10
crore entails a lot of control at every stage.



However, growth in the next
stage entails empowering employees at every stage and delegating every job
possible. This is where project management takes precedence over people
management.



However, Indian
companies are few and far between, which insist on reducing their operations
into cut and dried processes and systems.



Jaiprakash Associates
(Associates usually refers to a firm and not a company, wrong branding there)
has offered employees highly discounted shares. This is close on the wake of the
company’s optimism on higher business being obtained for government
spending in infrastructure spelling into higher orders.



It seems the offer will be
available to employees at all levels. The scheme has been formulated to reward
employees who have stuck to the group of companies for a long time, despite boom
or bust in the Indian economy.



According to the
company’s top management, it is the faith that the employees have in the
company’s ability to grow.



About 1.25 crore shares will
be issued to employees at Rs 60 each, a discount of 75 per cent to the
corresponding Friday’s closing price of Rs 236. More than 17,000 employees
are currently working for the group, of which 10,000, excluding the promoters,
will be given the option to subscribe to company
shares.



An equity stock
purchase scheme to this effect was approved by Jaiprakash’s board on last
to last Saturday. If the entire block of proposed shares is subscribed, the
company will get a fresh fund infusion of Rs 75 crore.

http://economictimes.indiatimes.com/Features/Financial-Times/Jaypee-emulates-global-giants-with-stock-options/articleshow/4653992.cms