Poonawalla Fincorp Boosts Employee Benefits With 500,000 Stock Options Under ESOP 2024

Poonawalla Fincorp, a leading player in the financial services sector, has announced a substantial enhancement to its employee benefits package by granting 500,000 stock options to eligible employees under its Employee Stock Option Plan (ESOP) 2024. This initiative was approved by the company's Nomination and Remuneration Committee during a meeting on 2 September.

The stock options will be granted at an exercise price of Rs 390.60 per share, according to the company's recent filing with the National Stock Exchange of India and BSE. The vesting schedule for these options will follow the guidelines established under the ESOP-2024 - Scheme II, in compliance with the Securities and Exchange Board of India (SEBI) regulations.

Despite this positive announcement, Poonawalla Fincorp’s share price was trading down by 0.50 per cent at Rs 386.25 on the BSE as of 1:33 pm on 3 September. The company currently boasts a market capitalization of Rs 30,009.43 crore.

Poonawalla Fincorp has reported strong financial performance in the first quarter of FY25, with Assets Under Management (AUM) reaching Rs 26,972 crore. This represents a substantial 52 per cent year-over-year (YoY) increase and an 8 per cent rise quarter-over-quarter (QoQ). The company’s diversified AUM portfolio consists of 35 per cent in MSME finance, 28 per cent in personal and consumer finance, 17 per cent in loans against property, and 14 per cent in pre-owned car finance.

The company has also shown marked improvement in asset quality, with its gross Non-Performing Assets (NPA) ratio declining to 0.67 per cent, a reduction of 75 basis points YoY and 49 basis points QoQ. The net NPA ratio also fell to 0.32 per cent, down by 44 basis points YoY and 27 basis points QoQ. Additionally, Poonawalla Fincorp’s Provision Coverage Ratio stands at 52.53 per cent.

This strategic move to enhance employee benefits through stock options highlights Poonawalla Fincorp’s commitment to rewarding its workforce and aligns with its broader goal of sustaining growth and improving financial performance.