Canara Bank is raising Rs 1000 crore through Employee Stock Purchase Plan. Canara Bank board has approved the purchase of 6 crore equity shares to its staff to raise up to Rs 1,000 crore under employee stock purchase scheme. The bank has plans to raise Rs 7,000 crore during 2018-19.
What is Employee Stock Purchase Scheme ?
As per definition “An employee stock purchase plan (ESPP) is an organization or company provided option in which participating employees can purchase company shares at a discounted price.Employees contribute to the plan through payroll deductions, which build up between the offering date and the purchase date.”
The capital is to be raised in one or more tranches subject to mandatory/regulatory approvals from various agencies, including the government.
Punjab National Bank, Allahabad Bank and United Bank have already announced their plans under employee stock option schemes.