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27.Employee stock compensation
(i) Pursuant to the shareholders’ resolutions dated February
27, 2001 and September 25, 2001, the Company
introduced the “Bharti Tele-Ventures Employees’ Stock
Option Plan” (hereinafter called “the Old Scheme”) under
which the Company decided to grant, from time to time,
options to the employees of the Company and its
subsidiaries. The grant of options to the employees under
the ESOP Scheme is on the basis of their performance and
other eligibility criteria.
(ii) On August 31, 2001 and September 28, 2001, the
Company issued a total of 1,440,000 equity shares at a
price of Rs 565 per equity share to the Trust. The Company
issued bonus shares in the ratio of 10 equity shares for
every one equity share held as at September 30, 2001, as a
result of which the total number of shares allotted to the
trust increased to 15,840,000 equity shares.
(iii)Pursuant to the shareholders’ further resolution dated
September 6, 2005, the Company announced a new
Employee Stock Option Scheme (hereinafter called “the
New Scheme”) under which the maximum quantum of
options was determined at 9,367,276 options to be
granted to employees from time to time on the basis of
their performance and other eligibility criteria.
(iv)All above options are planned to be settled in equity at the
time of exercise and have maximum period of 7 years from
the date of respective grants. The plans existing during the
year are as follows:
a) 2001 Plan under the Old Scheme
The options under this plan have an exercise price of
Rs 11.25 per share (Post split, refer Note 28 of Schedule
22) and vest on a graded basis as follows:
Vesting period from Vesting
the grant date schedule
For options with a vesting On completion of 12 months 20%
period of 36 months: On completion of 24 months 30%
On completion of 36 months 50%
For options with a vesting On completion of 12 months 15%
period of 42 months: On completion of 18 months 15%
On completion of 30 months 30%
On completion of 42 months 40%
For options with a vesting On completion of 12 months 10%
period of 48 months: On completion of 24 months 20%
On completion of 36 months 30%
On completion of 48 months 40%
b) 2004 Plan under the Old Scheme.
The options under this plan have an exercise price of Rs 35 per share (Post
split, refer Note 28 of Schedule 22) and vest on a graded basis as follows:
Vesting period from Vesting
the grant date schedule
For options with a vesting On completion of 12 months 10%
period of 48 months: On completion of 24 months 20%
On completion of 36 months 30%
On completion of 48 months 40%
c) Super-pot Plan under the Old Scheme
The options under this plan have an exercise price of Rs Nil per share and vest
on a graded basis as follows:
Vesting period from Vesting
the grant date schedule
For options with a vesting On completion of 12 months 30%
period of 36 months: On completion of 24 months 30%
On completion of 36 months 40%
d) 2006 Plan under the Old Scheme
The options under this plan have an exercise price of Rs 5 per share (Post split,
refer Note 28 of Schedule 22) and vest on a graded basis from the effective
date of grant as follows:
Vesting period from Vesting
the grant date schedule
For options with a vesting On completion of 36 months 50%
period of 48 months: On completion of 48 months 50%
e) 2005 Plan under the New Scheme
The options under this plan have an exercise price in the range of Rs 5 to
Rs 461 per share (Post split, refer Note 28 of Schedule 22) and vest on a
graded basis from the effective date of grant as follows:
Vesting period from Vesting
the grant date schedule
For options with a vesting On completion of 12 months 10%
period of 48 months: On completion of 24 months 20%
On completion of 36 months 30%
On completion of 48 months 40%
f) 2008 Plan and Annual Grant Plan (AGP) under the New Scheme
The options under this plan have an exercise price in the range of Rs 590 to
Rs 805 per share (Post split, refer Note 28 of Schedule 22) and vest on a graded
basis from the effective date of grant as follows:
2008 Plan AGP#
Vesting period from Vesting Vesting
the grant date schedule schedule
For options with On completion of 12 months 25% 33%
a vesting period On completion of 24 months 35% 33%
of 36 months: On completion of 36 months 40% 33%
# The above plan has been withdrawn effective January 1, 2010