BPCL staff challenging disinvestment plan in court disallowed to take part in Stock Purchase Scheme

MUMBAI: The BPCL employees, who have moved court challenging the company’s share disinvestment plan will be disallowed to participate in the ‘BPCL Employees Stock Purchase Scheme 2020 (ESPS 220)’ approved on Monday by the Compensation and Remuneration Committee of the company.

The ‘committee’ functioning under the BPCL board has approved the offer of up to 4.34 crore equity shares of face value of Rs10 to the eligible employees under ESPS 2020.

Bur a filing by BPCL in the stock markets on Monday has clearly said that “if any employee, individually or as member of any collectives(s) has filed or files any litigation before any Court of Law in relation to the ‘Strategic Disinvestment of Government of India shareholding in BPCL’, then he/she shall not be eligible to participate in the Scheme.”

But the statement further clarified that though such employees will still be entitled to apply for the benefits of the ‘Scheme, the allotment/transfer of shares will be made only if he/she withdraws from such litigation or withdraws such complaint and submit proof thereof to the company before October 15, 2020.

On the pricing, the company sad that the eligible employees who accept the offer within the Offer Period, it shall not be less than 33.33 per cent of the market price prevailing as on the Offer Date or Purchase Date, whichever is lower; and for the eligible employees who accept the offer after the expiry of the Offer Period but within the Extended Offer Period, it will not be less than 66.67 per cent of the market price.

The stock purchase scheme is a move to reward the employees ahead of privatisation. While BPCL did not give details, a media report said the ‘BPCL Trust for Investment in Shares’ holds around 9.33 per cent stake of the company’s paid-up share capital.

As per the disinvestment plan that invited in widespread resistance from the public as well as employees, the government is selling the whole 52.98 per cent stake the government holds in BPCL, to a strategic investor. Expression of Interest (EoI) for the privatisation is awaited soon.

 

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