Chambal Fertilisers grants 2850000 stock options

Chambal Fertilisers & Chemicals Ltd has announced that the Compensation Committee of the Board of Directors of the Company at its meeting held on September 16, 2010 granted 28,50,000 stock options to the employees and Managing Director of the Company at a price of Rs. 73.50 per share, under the "CFCL Employees Stock Option Scheme 2010" (ESOS 2010). Each stock option is convertible into one equity share of Rs. 10/- of the Company upon vesting.

Subject to the terms of the ESOS 2010, the stock options would vest in the proportion of 15%, 15%, 20%, 25% and 25% upon expiry of 1 year, 2 years, 3 years, 4 years and 5 years respectively from the date of grant. The stock option grantee can exercise the options within a period of 5 years from the respective dates of vesting. The vesting and exercise of options in case of death, permanent incapacity, retirement, etc. of an employee shall be governed by the specific provisions of ESOS 2010. The grant of these stock options is pursuant to the resolution passed by the shareholders of the Company at its annual general meeting held on August 27, 2010.

The equity shares of the Company to be allocated to the option grantees will be purchased by 'CFCL Employees Welfare Trust' from the secondary market.

The stock closed the day at Rs.72.15, down by Rs.1.25 or 1.70%. The stock hit an intraday high of Rs.73.90 and low of Rs.71.50.

The total traded quantity was 3.46 lakhs compared to 2 week average of 9.20 lakhs.

Source : Equity Bulls

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