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Polaris to extend Esops to more employees

Our Bureau

CHENNAI, Feb. 7

POLARIS Software Lab is set to revise its existing Esop scheme, and also increase the quantum of its stock options, which the company exhausted long back.

The company's Chairman and Managing Director, Mr Arun Jain, said that one million additional shares, representing another 3.5 per cent of the company's paid-up equity capital, will be offered to employees and fresh recruits.

The company's board has passed a resolution to this effect, and an extraordinary general meeting is to be convened in March to get shareholder approval, he said.

Mr Jain said that currently, only 850 employees (45-50 per cent) are covered under the scheme, as against the strength of around 2,300.

Hence, the revision is necessitated to include more people, he said, adding that the revision will be effective April 1, 2001.

Mr Jain also said that other than the employees, Esops will also be issued to fresh recruits with an MBA qualification, and from the management schools, he said.

Last year, the company issued Esops, under which 4,69,200 equity shares of Rs 10 each (2.75 per cent of the company's paid-up equity capital) were offered to the employees.

For the quarter ended December 31, 2000, out of the company's total expenditure of Rs 55 crore, the provision for amortisation of Esops was Rs 0.65 crore.

Meanwhile, at BSE, the company's share price was down Rs 3.10, and closed at Rs 510.55, while at NSE, the share price was down 40 paise, to close at Rs 510.