Page 233 - FBL AR 2019-20

CORPORATE STATUTORY FINANCIAL
OVERVIEW STATEMENTS STATEMENTS

Notes to the Consolidated financial statements for the year ended March 31, 2020

60 Share-based payments (contd.)

Each employee share option converts into one equity share of the Parent Company on exercise. No amounts are paid or payable by the
recipient on receipt of the option. The options carry neither rights to dividends nor voting rights. Options may be exercised at any time from
the date of vesting to the date of their expiry.
The number of options granted is calculated in accordance with the performance-based formula and is subject to approval by the
remuneration committee. The formula rewards executives and senior employees to the extent of the Parent Company and the individual’s
achievement judged against both qualitative and quantitative criteria.
The following share-based payment arrangements were in existence during the current year:
( H in Lakhs )
Options series Number** Grant date Expiry date Exercise price Fair value at
grant date
Plan 1 (60% of options granted under ESOP 2019) 1,26,143 25.02.2019 and 25.02.2025 and 83.67 421.71
12.08.2019 12.08.2025
Plan 1 (20% of options granted under ESOP 2019) 42,047 25.02.2019 and 25.02.2026 and 83.67 421.71
12.08.2019 12.08.2026
Plan 1 (20% of options granted under ESOP 2019) 42,047 25.02.2019 and 25.02.2027 and 83.67 421.71
12.08.2019 12.08.2027
Plan 2 (100% of options granted under ESOP 2019) 2,17,410 25.02.2019 25.02.2025 83.67 418.22
Options granted under ESOP 2019 shall vest not before 1 (one) year and not later than maximum Vesting Period of 5 (five) years from the date
of grant of such Options. Subject to the minimum vesting period of one year, the Nomination and Remuneration Committee of the Board at
its discretion approve for acceleration of Vesting of any or all unvested Options of the Option Grantee.

The above number of options, fair value at grant dates and exercise price are adjusted in accordance with the Share exchange ratio (0.398:1)
as per the scheme of amalgamation.
**The number of options are after giving effect of the scheme of amalgamation and bonus shares issued during the year.
1.2 Fair value of share options granted
The weighted average fair value of the share options granted during the financial year is H421.71 (Previous year H419.86). Options were priced
using Black-Scholes option pricing model. Where relevant, the expected life used in the model has been calculated based on a weighted
average of vests. Expected volatility is based on the historical share price information of similar listed entities.
( H in Lakhs )
Inputs into the model Option series - Year -2020**
Plan 1 (60% of options Plan 1 (20% of options Plan 1 (20% of options Plan 2 (100% of
granted under ESOP granted under ESOP granted under ESOP options granted under
2019) 2019) 2019) ESOP 2019)
Grant date share price 421.71 421.71 421.71 418.22
Exercise price 83.67 83.67 83.67 83.67
Expected volatility 69.28% 68.83% 68.08% 69.28%
Option life 4.51 years 5.51 years 6.51 years 4.51 years
Dividend yield 0.00% 0.00% 0.00% 0.00%
Risk-free interest rate 7.14% 7.25% 7.35% 7.14%
**The above fair value at grant dates and exercise price are adjusted in accordance with the Share exchange ratio (0.398:1) as per the scheme
of amalgamation.

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