In a recent significant move, the food-related company Sapphire Foods India distributed 6,468 equity shares to its staff under its employee stock ownership plan (ESOP). This action aims to motivate and reward its staff for their commitment and contribution to the expansion and success of the business.
The employees were given equity shares with a face value of Rs. 10 each. With a nominal value of Rs. 10 per share allocated, this means that each employee who received shares now owns a portion of the company’s equity.
Sapphire Foods India’s total issued, subscribed, and paid-up capital has increased to Rs 63,60,43,680 as a result of this allocation. A face value of Rs. 10 is now assigned to each of the 6,36,04,368 equity shares that make up this capital.
Companies often use the ESOP as an efficient way to balance the interests of their employees and shareholders. Employees are encouraged to work diligently for the company’s prosperity and long-term growth by giving them the chance to own stock in it. This fosters a sense of ownership in them.