JSW rolls out Rs 1,000-crore ESOP scheme

After the tech companies, now it is the turn of manufacturing firms to roll out employee stock ownership plans in this season of ESOPs. Sajjan Jindal-led JSW Group has unveiled a Rs 1,000-crore ESOP scheme to employees of JSW Steel and JSW Energy. The scheme is being offered to employees at all levels, including workmen, but excludes promoters.

Dilip Pattanayak, president of HR at JSW Group Corporate, called it the first instance in the manufacturing sector wherein options are being given to employees at all levels, from the shop-floor worker to top management personnel.

The steel manufacturer will grant 13 million shares and JSW Energy 3.66 million shares. Shares will be given under two categories —OPJ ESOP Plan 2021 and OPJ Samruddhi Plan 2021.

JSW Steel will give 8 million shares, representing 0.33% of the issued equity capital, to employees of JSW Steel and its subsidiaries. This plan will cover workmen, junior and middle management grades under the OPJ Samruddhi Plan. On the other hand, JSW Energy will grant 2.25 million shares to junior and middle management, representing 0.14% of the issued equity capital of the company.

Under OPJ ESOP Plan, 5 million shares, representing 0.21% of the issued capital, will be offered to senior management personnel of JSW Steel and its domestic subsidiaries.

JSW Energy is offering 1.41 million shares, representing 0.09% of the issued capital of the company, to middle and senior management employees.

JSW Steel stock in the last one year has returned 211%, while JSW Energy gave 413% returns, compared with 46% for the benchmark Nifty50, according to a report in the Business Standard.

According to Pattanayak, there will be no dilution for existing shareholders as shares will be purchased from the secondary market

In value terms, the ESOP plan is more than Rs 1,000 crore.

“We need to make sure that whatever growth plan we have as an organisation over the next few years, everybody is fully invested into that,” Pattanayak said.