This promoter is gifting ₹34 crore worth of shares to employees

Sanjay Shah, Chairman and Managing Director of Prudent Corporate Advisory Services, will transfer 1.75 lakh shares of the company to 650 employees, including household staff.The Securities and Exchange Board of India (SEBI) has approved the transaction, Prudent Corporate Advisory Services said in a statement on Wednesday (March 12).

Details of the share transfer
Shah will gift shares worth ₹34 crore from his personal wealth, representing 0.4% of his stake in Prudent Corporate Advisory Services.The move marks the company’s 25th anniversary, and all recipients have worked with the firm for at least three years.

Regulatory and compliance process

SEBI approved the transfer, making it an unusual instance where a promoter is gifting shares to employees outside of an Employee Stock Option Plan (ESOP).Katalyst Advisors advised on the transaction and handled regulatory approvals.

Before execution, the company will disclose the list of beneficiaries and other details to the stock exchanges in compliance with SEBI’s approval.

Similar past instances

A similar move occurred when IDFC First Bank’s CEO, V Vaidyanathan, gifted shares to office staff, drivers, and domestic help.

Shah stated that the transfer was a gesture of gratitude to those who have been part of his journey.

“This is not just a transfer of shares; it is my heartfelt thank you to those who have stood with me – not just as employees, but as companions on this journey. Your quiet contributions, loyalty, and belief in our shared vision have been invaluable, forming the foundation of our success. I am truly excited for the wonderful future we will create together,” said Shah.