RCom offers ESOP: 17.5 million Shares for Employee Stock Options Plan

Following the footprints of the big brother Mukesh Ambani, the junior Ambani has also taken the ESOP or Employee stock options plan route to retain existing and attract prospective employees.
Very recently, Reliance Retail offered ESOPs or Employee Stock Options Plan. Now, the Anil Ambani led Anil Dhirubhai Ambai Group (ADAG) led Reliance Rcom is set to offer a whooping 17.5 million shares to the employees as ESOP.

A total of 20,000 employees will be entitled to get a subscription for the 17.5 million shares that are being offered by RCom. This includes employees that also form the part of RCom Subsidiaries.

The issue is one of the biggest ESOP scheme by an Indian telecom company.

The Employee stock options will vest at the end of one year from the date of allotment and the employees will be eligible for exercising the stock options up to a period of 9 years from the date of vesting. The issue of ESOPs would cost about Rs 9.50 billion.

Anil Ambani is doing all he can for retaining the trust of his employees as well as shareholders. Recently concluded Reliance Power IPO, which had a devastating listing, forced him to go for a Bonus Issue for Reliance Power shares. And now its ESOP for RCom employees. No wonder why Reliance is such a big & well trusted name in the Stock Markets.

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