This businessman gave 650 employees a ₹5L bonus, netizens applaud
What's the story
Sanjay Shah, the Chairman and Managing Director of Prudent Corporate Advisory Services, will gift around 1.75 lakh shares of his company to 650 employees. Valued at ₹34 crore, the generous act has been approved by the Securities and Exchange Board of India (SEBI). The gesture marks the company's 25th anniversary and covers all employees who have been with the firm for at least three years.
Regulatory approval
Unique share gift outside ESOP
Notably, this transaction is unique as it involves a promoter gifting shares to employees outside of an Employee Stock Option Plan (ESOP). Katalyst Advisors facilitated the transaction and managed regulatory approvals. Before implementation, Prudent Corporate Advisory Services will disclose the list of recipients and other relevant information to stock exchanges in accordance with SEBI's approval.
Appreciation
Shah's heartfelt message to employees
Shah thanked the beneficiaries of this huge gift. He said, "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." This gesture shows Shah's immense gratitude for their contribution, loyalty, and faith in the company's common vision.
Social media reaction
Positive response to Shah's generous gesture
Shah's decision has been widely appreciated on social media. One user wrote, "Wonderful gesture Sanjay bhai. Very few have such big heart. Keep it up bro." Another post noted how unique this act was, saying, "Never seen this before! He has decided to gift 34cr worth of shares from his personal holdings to his 650 employees on completing 25 years in business. That's around 5.3L per employee!"