Companies & Sectors
Economy & Nation Exclusive
Godrej Consumer shares at Re1!

Godrej Consumer Products is quoted at Rs444. Some employees have got stock grants at Re1!

Godrej Consumer Products (GSPL), a fast moving consumer goods company, recently filed the details of its Employee Stock Grant Scheme 2011 (ESGS 2011) with Bombay Stock Exchange (BSE). What caught the eye of Amit Bagaria, a smart investor, was the exercise price at which employees can exercise their stock options. The filing said, “The Exercise Price shall be Re1 per equity share. The equity shares vested in the eligible employees shall be allotted on payment of the Exercise Price.” When we first heard about it, we thought it was a typo or a joke. No, it wasn’t; we checked the BSE site and confirmed it. 

You can check the link for yourself here:

The company will offer certain employees shares of the company at a mere Re1 per share. This means, the company is rewarding certain employees by giving them shares in the company at a fairytale price, one which we can only dream of.

The filing said “Godrej Consumer Products has informed BSE that in terms of Employee Stock Grant Scheme 2011 (ESGS 2011), the HR & Compensation Committee vide resolution dated March 07, 2012 approved the granting of 4470 Stock Grants to Eligible Employees of the Company.”

Each stock grant represents one equity share of the company. GSPL will to award 4,470 equity shares at virtually free prices, to certain employees, though the beneficiaries will have to collectively fork out a measly Rs4,470 out of their own pockets to acquire these grants.

Further, the company had outlined the dates at which the employees would be permitted to exercise their stock options. The first batch of 894 grants should be exercised not before 6 March 2013. The second batch of 1,788 grants not before 31 May 2013 and finally the last 1,788 grants will be exercised only on or after 31 May 2014. This dilution of shareholding vis-a-vis stock grants works against the common shareholder while the beneficiaries are getting sumptuous free lunch.




5 years ago

They are not getting a free lunch, they are being rewarded for whatever hard work they may have done.
This is almost same as giving them a cash bonus, but better.
Would you have raised an eyebrow if this was a outright cash bonus? if not, why not?
Here, the actual amount of money they can make out of the reward is directly tied to the stock price. If the stock price goes up, the employess stand to make more money. So they are being incentivized to work harder and make the company more profitable, and thus, making the stock price go up. So this will be useful for non-employee shareholders as well.

Economy & Nation Exclusive
Rail Budget: Highlights of Railway Budget 2012-13

Railway minister Dinesh Trivedi hiked passenger fares, for the first time after eight years

Here are the highlights of the Railway Budget for 2012-13... 

  • Passenger fares increased marginally. The increase will be by 2 paise per km for suburban and ordinary second class; 3 paise per km for mail/express second class; 5 paise per km for sleeper class; 10 paise per km for AC Chair Car, AC 3 tier and First Class; 15 paise per km for AC 2 tier and 30 paise per km for AC I.
  •   Minimum fare and platform tickets to cost Rs 5.
  • 50% concession in fare in AC-2, AC-3, Chair Car & Sleeper classes to patients suffering from “Aplastic Anaemia” and “Sickle Cell Anaemia”.
  • Extending the facility of travel by Rajdhani and Shatabdi trains to Arjuna Awardees.
  • Travel distance under “Izzat Scheme” to increase from 100 km to 150 km.
  •   SMS on passenger mobile phone in case of e-ticket to be accepted as proof of valid reservation.
  • Introduction of satellite-based real time train information system (SIMRAN) to provide train running information to passengers through SMS, Internet, etc.
  • On board passenger displays indicating next halt station and expected arrival time to be introduced.
  • Installation of 321 escalators at important stations of which 50 will be commissioned in 2012-13.
  • Introduction of regional cuisine at affordable rates; launching of book-a-meal scheme to provide multiple choice of meals through SMS or email.
  • Introduction of coin/currency operated ticket vending machines.
  •   Upgradation of 929 stations as Adarsh Stations including 84 stations proposed in 2012-13; 490 stations have been completed so far.
  • Specially designed coaches for differently-abled persons to be provided in all mail/express trains.
  •   Introduction of Rail Bandhu on-board magazines on Rajdhanis, Shatabdis and Duronto trains.
  •   Setting up of AC Executive lounges at important stations
  • 75 new express trains to be introduced.
  • 21 new passenger services, nine DEMU services and eight MEMU services to be introduced.
  •   Run of 39 trains to be extended.
  • Frequency of 23 trains to be increased.
  • 75 additional services to run in Mumbai suburban section; 44 new suburban services to be introduced in Kolkata area, 50 new services to be introduced in Kolkata Metro; 18 additional services in Chennai area.
  • 725 km new lines, 700 km doubling, 800 km gauge conversion and 1,100 km electrification targeted in 2012-13.
  •   Rs6,872 crore provided for new lines, Rs3,393 crore for doubling, Rs 1,950 crore for gauge conversation, Rs828 crore for electrification
  • Highest ever plan outlay of Rs60,100 crore
  • Rae Bareli coach factory manufactured 10 coaches in 2011-12; phase-II of the factory would be commissioned in 2012-13.
  •   A wagon factory to be set up at Sitapali (Ganjam District of Odisha)
  • A rail coach factory with the support of Government of Kerala to be set up at Palakkad; two additional new manufacturing units for coaches to be established in the Kutch area in Gujarat and at Kolar in Karnataka with active participation of the state governments.
  • Setting up of a factory at Shyamnagar in West Bengal to manufacture next generation technology propulsion system for use in high power electric locomotives.
  • Creating missions as recommended by Pitroda Committee to implement the modernization programme.
  • Setting up of Railway Tariff Regulatory Authority to be considered.
  •   New board members for Safety/Research and PPP/Marketing to be inducted.
  •   Rail-Road Grade Separation Corporation to be set up to eliminate level crossings.
  • Indian Railway Station Development Corporation to be set up to redevelop stations through PPP mode.
  •   Logistics Corporation to be set up for development & management of existing railway goods sheds and multi-modal logistics parks.
  • National High Speed Rail Authority to be set up.
  • Pre-feasibility studies on six high speed corridors already completed; study on Delhi-Jaipur-Ajmer-Jodhpur to be taken up in 2012-13.
  • Introduction of a “Green Train” to run through the pristine forests of North Bengal.
  • Setting up of 200 remote railway stations as “green energy stations” powered entirely by solar energy.
  •   Providing solar lighting system at 1,000 manned level crossing gates.
  • 2,500 coaches to be equipped with bio toilets.
  • Setting up of 72 MW capacity windmill plants in Andhra Pradesh, Karnataka, Kerala, Tamil Nadu and West Bengal.
  •   Installation of Integrated Security System at all 202 identified stations to be completed in 2012-13.
  • Escorting of trains by RPF/GRP extended to 3,500 trains.
  •   Integration of RPF helpline with the All India Passenger Helpline.
  •   Setting up of a Railway Safety Authority as a statutory regulatory body as recommended by Kakodkar Committee
  • Three “Safety Villages” to be set up at Bengaluru, Kharagpur and Lucknow for skill development for disaster management.
  •   Over one lakh persons to be recruited in 2012-13—backlog of SC/ST/OBC and other categories to be wiped off.
  •   Introduction of a wellness programme for railway staff at their work places.
  •   Ensuring proper rest for skilled and technical staff including the running crew.
  • Institution of  “Rail Khel Ratna” Award for 10 rail sports-persons every year.
  •   New coaching terminal at Naihati, the birth place of Rishi Bankim Chandra Chattopadhyay commemorating him on 175th birth anniversary.
  •   Project to connect Agartala with Akhaura in Bangladesh to be taken up in 2012-13.
  • Freight loading of 1,025 million tonnes (MT) targeted; 55 MT more than 2011-12
  •   Passenger growth targeted at 5.4 %.


HC asks SEBI to reconsider MCX-SX application within a month

The court ruling is considered as a moral victory for the MCX SX, promoted by Jignesh Shah of Financial Technologies India (FTIL), which all along has been maintaining that the regulator did not give a fair hearing to its application

Mumbai: The Bombay High Court today asked the markets regulator Securities and Exchange Board of India (SEBI) to reconsider MCX’s stock exchange application in one month and set aside its earlier order, reports PTI.

Justices DY Chandrachud and Anoop V Mohta passed the order today after hearing an appeal filed by MCX-SX in October 2010 against market regulator for rejecting its application to set up a new equities trading platform.

In the last hearing last November, the high court had reserved its judgment after the two parties—SEBI and MCX-SX—were unable to sort out the matter out-of-court.

The court ruling is considered as a moral victory for the MCX SX, promoted by Jignesh Shah of Financial Technologies India (FTIL), which all along has been maintaining that the regulator did not give a fair hearing to its application.

“The SEBI was, is, and will always remain a respected regulator. The MCX-SX stance was not against regulatory institution, but was for principles. We stand vindicated and always have full faith in our judiciary. We remain committed to growth and development of the country’s financial markets,” MCX-SX spokesperson said after the court order this morning.

The regulator SEBI could not be reached immediately for comments.


We are listening!

Solve the equation and enter in the Captcha field.

To continue

Sign Up or Sign In


To continue

Sign Up or Sign In



The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)