Together good things happen - Airtel

Information regarding the Employees Stock Option Scheme (as on March 31, 2010)
Sl. Particulars ESOP Scheme 2005 ESOP Scheme 2001
No.
1) Number of stock options granted 21,337,264* 39,361,579**
2) Pricing formula Exercise Price not less than the par 29,015,686 @ 11.25
value of equity share and not more 1,760,000 @ 0.45
than the price prescribed under Chapter 4,380,000 @ 35.00
VII of the SEBI (Issue of Capital and 142,529 @ 0.00
Disclosure Requirements) Regulation 3,998,364 @ 5.00
2009 on Grant Date 40,000 @ 60.00
25,000 @ 110.50
3) Option vested 9,708,730 36,857,036
4) Number of options exercised 2,226,368 28,549,505
5) Number of shares arising as a result of exercise of option 2,226,368 Nil
6) Number of option lapsed 6,281,934 8,516,872
7) Money realized upon exercise of options Rs 283,712,555 Rs 375,268,085
8) Total number of options in force 12,828,962 2,295,202
9) Options granted to senior managerial personnel
Ms. Abhilasha Hans 26,600 Nil
Mr. Ajai Puri 42,000 Nil
Mr. Atul Bindal 61,400 Nil
Mr. Deven Khanna 10,600 Nil
Dr. Jai Menon 59,000 Nil
Mr. Joachim Horn Nil 90,000
Ms. Jyoti Pawar 20,000 Nil
Mr. K. Shankar 39,000 Nil
Mr. Manik Jhangiani Nil 150,000
Mr. Manoj Kohli 91,400 Nil
Mr. N. Arjun 34,600 Nil
Mr. Narender Gupta 10,600 Nil
Mr. S. Asokan 31,400 Nil
Mr. Sanjay Kapoor 89,000 Nil
Mr. Sarvjit Singh Dhillon 10,600 Nil
Ms. Shamini Ramalingam 11,400 Nil
Mr. Srinivas K 59,000 Nil
Ms. Vijaya Sampath 3,534 Nil
10) Diluted earning per share (EPS) as per AS 20 0.0017 NA
11) Difference between the employees compensation NA 38,04,341
cost based on intrinsic value of the stock and the (0.001)
fair value for the year and its impact on profits and
on EPS of the Company
Annexure - C
12) a) Weighted average exercise price Rs 270.13 a) Rs 11.25; Re 0.45; Rs 35; Rs 0;
Rs 5; Rs 60; Rs 110.5
b) Weighted average fair price Rs 155.11 b) NA; NA; NA; Rs 69.70;
Rs 251.46; Rs 84.43; Rs 357.63
13) Method and significant assumptions used to Black Scholes / Lattice Valuation Model
estimate the fair values of options
(i) risk free interest rate i) 6.44% p.a. to 7.86% p.a. (The Government Securities curve yields
considered as on valuation date)
(ii) expected life ii) 48 to 66 months
(iii) expected volatility iii) 36.13% to 37.47% (assuming 250 trading days to annualize)
(iv) expected dividends iv) 20% (Dividend yield of 0.31%)
(v) market price of the underlying share on grant date v) Rs 307.42 to Rs 412.13 per equity share
Bharti Airtel Annual Report 2009-10
* Granted 2,602,712 options out of the options lapsed over a period of time
** Granted 7,681,579 options out of the options lapsed over a period of time
The options granted to the senior managerial personnel under both the schemes are subject to the adjustments as per the terms of respective
performance share plan
There is no variation in the terms of options during the year
The quantum and the price of the options have been adjusted due to sub-division in the face value of shares
Other than the employees stated in point no. 9, no other employee was granted stock options exceeding 5% of the total grants or exceeding 1% of the
issued capital during the year
39