The ESOPs were extended to 2500 employees this week, post-approval of both JSW Group and SAIC, says the CEO Emeritus.
17 Jul 2024 | 6033 Views | By Ketan Thakkar
JSW MG Motor India has rolled out the Employee Stock Options program for its 2,500 employees nationwide, to Indianise the company.
Rajeev Chaba, CEO Emeritus, says that JSW MG Motor wants to create an “Infosys movement in the automotive industry,” which leads to “wealth creation and, wealth distribution,” by doing ...
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JSW MG Motor India has rolled out the Employee Stock Options program for its 2,500 employees nationwide, to Indianise the company.
Rajeev Chaba, CEO Emeritus, says that JSW MG Motor wants to create an “Infosys movement in the automotive industry,” which leads to “wealth creation and, wealth distribution,” by doing this.
The scheme was rolled out this week after the approval of primary stakeholders—JSW Group, which owns a 35% stake in the company, and the Chinese parent of MG Motor Shanghai Automotive Industrial Corporation.
“After the execution of the same, JSW MG Motor India will be 51% owned by Indians and the balance by Chinese. As things progress, the Chinese stake will probably dilute further (through an IPO). We have already announced the scheme and sent it to both shareholders. And hopefully, we will be able to create that kind of wealth in the next three to five years,” said Chaba.
JSW Group has a 35% stake in the JV company, 11% is held by financial investors, 5% by employees, and the balance by Chinese partner SAIC, which owns the brand MG.
A Reuters report in April stated that JSW Ventures, part of the JSW conglomerate, was to buy a 35% stake in MG Motor India for Rs 3580 crore ($430 million). This meant MG Motor India was valued at around Rs 10,000 crore.
Info Edge India Fund will buy an 8% stake, a dealer trust will take a 3% stake, and an employee stock ownership plan will own 5%.
Chaba was non-committal on the valuation, but the stock options extended to the employees were valued at a similar level as the price paid by JSW Group to invest in MG Motor India.
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