ESOP Surge: Spinny, Axis Bank Allot Shares, CRED, MyGate, Meesho Drive Buybacks

Welcome to the latest edition of Fables of ESOPs. While January and February were setting up the runway, the ESOP flight just took off in March. With various companies like Spinny, Vaibhav Global, Axis Bank and Zensar technologies expanding its ESOP Pool, and CRED & MyGate standing true to its commitment to liquidity creation, March really pose a good picture on how the rest of the year will look like.  

While some of this can be accounted to financial year close, it still sets the groundwork for the rest of the year straight.  

Let’s get right into the details.

Spinny, increases its ESOP Pool by 2.37 Cr more Options  

Spinny, a pre-owned car marketplace endorsed by Sachin Tendulkar, has broadened its Employee Stock Ownership Plan (ESOPs) by issuing an additional 2.37 crore options.  

This has increased its ESOP pool to 17.8 crore options. The fair value of each equity shares of Spinny, based on the startup's valuation in July 2023, stands at INR 54.85.  

Spinny completed its last ESOP Buyback in 2021, worth $12 million.  

Axis Bank allots 2.48 lakh new equity shares under ESOP

Axis Bank allocated 2,48,335 equity shares priced at Rs. 2 each as part of its ESOP Scheme.

Consequently, the paid-up share capital of the Bank has risen from Rs. 6,17,14,89,924 (comprising 3,08,57,44,962 equity shares of Rs. 2 each) to Rs. 6,17,19,86,594 (comprising 3,08,59,93,297 equity shares of Rs. 2 each).

Vaibhav Global alloted 26K new Equity Shares under its ESOP Program

On March 22nd, 2024, Vaibhav Global issued 26,371 new equity shares, each with a face value of Rs 2, to the "Vaibhav Global Employee Stock Option Welfare Trust." This allotment of shares was made under the company's various employee benefit schemes.

As a result of this share issuance, the total paid-up equity share capital of Vaibhav Global has now increased to Rs. 33,12,99,448, consisting of 16,56,49,724 equity shares, each with a face value of Rs. 2.

Zensar Technologies has allocated 66,847 New Equity Shares

Zensar Technologies issued 66,847 fully paid equity shares at a face value of Rs. 2 each to employees who exercised their Employee Stock Ownership Plan (ESOP) options. As a result, the company's issued and subscribed share capital has risen to Rs. 453,266,382, divided into 226,633,191 equity shares with a face value of Rs. 2 each.

Zensar Technologies is a company specializing in information technology services and consulting, providing various solutions such as software development, digital services, infrastructure management, and business process outsourcing.

CRED launched its 4^th AWP Program, Lifetime ESOP Buyback of 250 Cr

CRED, India’s prominent fintech unicorn, has recently launched its fourth ‘Accelerated Wealth Programme’ (AWP) for its employees. This program allows employees to acquire additional stock options with an accelerated vesting period, presenting an opportunity for enhanced wealth creation beyond the conventional Employee Stock Ownership Plans (ESOPs). The initiative commenced earlier in the month and will continue until March 31, 2024.

CRED disclosed that since its establishment, CRED has provided its employees with four liquidation opportunities. These opportunities have collectively generated a substantial wealth amounting to approximately INR 250 Crores.

MyGate, Community Management app rolled its ESOP Buyback Program

On Thursday, MyGate, the housing society management app, unveiled a plan to repurchase shares owned by its employees through its Employee Stock Ownership Plan (ESOP). The offer extends to employees across various roles and business segments who have completed more than four years with the company, allowing them to liquidate 20% of their vested shares.  

This will benefit 51 employees in total. However, the company has not declared the value of the liquidity program.  

The Bengaluru-headquartered firm witnessed a significant increase in revenue from operations, soaring by over 77% to reach Rs 71 crore in FY23 compared to Rs 40 crore in FY22. The company expects nearly 38-40% year-on-year growth in FY24, cofounder Abhishek Kumar said.

Meesho Initiated its biggest ESOP Buyback Program worth $25 Million

E-commerce startup Meesho has announced the commencement of its most extensive Employee Stock Ownership Plan (ESOP) buyback program to date, valued at ₹200 crore or $25 million. This initiative aims to facilitate wealth creation opportunities for approximately 1,700 existing and former employees.  

Meesho's ongoing ESOP buyback marks the fourth in the series, with the company progressively enlarging the scale of these repurchases with each iteration. Previously, Meesho conducted buybacks valued at $1 million in February 2020, $5 million in November 2020, and $5.5 million in October 2021.

In conclusion, the month of March has witnessed a flurry of activity in the Employee Stock Ownership Plans (ESOPs) space across various industries. Outstandingly, Meesho's substantial ESOP buyback program marks a significant milestone in the startup's journey, underscoring its commitment to rewarding and retaining talent.  

Overall, these developments signify a positive trend towards employee-centric policies and underline the importance of ESOPs in fostering a culture of ownership and empowerment within organizations.

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