🏢 About Radico Khaitan Limited
Radico Khaitan Limited, established in 1943 and headquartered in New Delhi, is one of the oldest and most respected liquor manufacturers in India. Known for flagship brands such as 8 PM Whisky, Magic Moments Vodka, and Morpheus Brandy, Radico operates major distilleries and bottling units across the country. It is listed on both NSE and BSE under the symbol RADICO.
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CIN: L26941UP1983PLC027278
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Website: www.radicokhaitan.com
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Registered Office: Rampur Distillery, Bareilly Road, Rampur, UP
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Email: investor@radico.co.in
📊 Key Market Data (As of May 9, 2025)
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Current Market Price (CMP): ₹2,448.80 (before 15% discount for ESOPs)
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ESOP Grant Price: ₹2,081.48 (15% discount on CMP)
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Stock Exchange Listings: BSE (532497), NSE (RADICO)
📌 Detailed Summary:
Radico Khaitan Limited has announced the grant of 80,000 stock options under its Employee Stock Option Scheme 2006 (ESOP 2006), as per SEBI regulations. This grant is a strategic move aimed at recognizing and retaining valuable talent. The options were approved by the Nomination, Remuneration and Compensation Committee via a circular resolution passed on May 11, 2025.
These stock options will entitle eligible employees to subscribe to 80,000 equity shares with a face value of ₹2/- each, at an exercise price of ₹2,081.48, which is 15% lower than the market price on the grant date. The pricing formula makes the grant attractive to employees, fostering a sense of ownership and long-term commitment to the company’s success.
The vesting schedule has been structured thoughtfully:
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For employees with 1+ year of service: 33% vests in Year 1, remaining over the next 3 years.
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For newer employees: 25% vests annually over 4 years.
These options must be exercised within 3 years of vesting. No options have been exercised yet, and no shares have been issued at this point, meaning there is no immediate dilution of equity or impact on EPS.
This ESOP move reflects Radico’s strategic aim to align employee growth with shareholder value creation, which can significantly impact the company’s performance and morale in the long term.
🔹 Point-Wise Highlights of the Announcement
🔸 Company Name: Radico Khaitan Limited
🔸 Date of Approval: May 11, 2025
🔸 Scheme Name: ESOP 2006
🔸 Total ESOPs Granted: 80,000
🔸 Face Value: ₹2/- per share
🔸 Exercise Price: ₹2,081.48
🔸 Discount on CMP: 15%
🔸 Eligibility: Selected employees of Radico
🔸 Vesting Criteria:
✔ 1+ yr employees → 33% + balance over 3 years
✔ <1 yr employees → 25% every year for 4 years
🔸 Exercise Period: 3 years from vesting date
🔸 Dilution Effect: Not applicable yet (options not exercised)
🔸 Listing Compliance: Fully compliant with SEBI 2021 norms
🔸 Communication Method: Circular resolution via Board Committee
🔸 Impact on EPS: Not yet applicable
🔸 Published on Website: Investor Relations Page
📈 Effect on Share Market
📉 Short-Term:
No immediate share issuance, so short-term dilution concerns are absent. However, announcement of ESOPs at discounted rates may cause minor speculative movements in the stock due to anticipation of future equity expansion.
📈 Long-Term:
It can enhance employee productivity and loyalty, positively impacting operational results, which may in turn improve stock performance over time.
📊 Investor Sentiment:
Generally viewed as neutral to positive, especially when used as a talent-retention strategy in a growth-phase company like Radico.
🙋♂️ How This Helps Retail Traders
✅ Gives early insight into employee-related developments
✅ Signals confidence in company’s long-term outlook
✅ Indicates company’s focus on sustainable talent management
✅ Helps traders predict long-term value creation
✅ ESOP-based incentives often correlate with growth strategies, which can benefit shareholders too
📊 Chart: Share Price vs. ESOP Grant Price
| Item | Value (₹) |
|---|---|
| Market Price (May 9) | ₹2,448.80 |
| ESOP Grant Price | ₹2,081.48 |
| Discount Offered | 15% |
| Total Options Granted | 80,000 Shares |
| Potential Dilution | Minimal (initially) |
🗣️ Phrase:
“Think this move will boost Radico’s long-term performance? Drop your view in the comments!”
📉 Stock Market Disclaimer
Disclaimer: This post is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy/sell any stock or share. Investing in the stock market involves risk. Past performance is not indicative of future results. Always conduct your own research or consult a licensed financial advisor before making investment decisions.
