CMC to issue stock options for employees

NEW DELHI, JANUARY 9: In a bid to attract, retain and motivate its human resources, state-owned CMC Limited plans to give employee stock options to all eligible employees.

As many as 16 lakh equity shares would be given at discounts of either 40 or 60 per cent to the price fixed for further issue of share capital to the public and institutions. The government has given nod to CMC to offer fresh equity to the extent that its stake is not reduced below 51 per cent from the current 86 per cent. The firm has appointed four lead managers including SBI Caps, DSP Merril Lynch and Kotak Mahindra for its second offer to the public.

It is yet to decide the price band for the book-built portion of the 80 lakh new equity shares. It plans to offer 75 per cent through this route and the rest to retail investors at a fixed price.