MUMBAI, July 25: Mahindra & Mahindra Ltd has decided to go for employee stock option scheme to allot shares of the company to the employees. It has also decided to increase its equity stake in Mahindra & Mahindra Financial Services (MMFSL) from the current level of 30 per cent to 43.22 per cent.

The company has sought the permission of shareholders to issue shares upto five per cent of the equity capital for the proposed stock option scheme. As the share capital of the company is now Rs 101.79 crore, the company can issue shares worth over Rs 5 crore to the its employees.

It has suggested that shares can be allotted directly to the employees or through a special trust which may be set up in accordance withthe provisions of the law. The scheme may also envisage the provision of funds by the company to enable the employees/trust to acquire, purchase or subscribe for the shares of the company.

The company has also decided to hike the stake in MMFSL to 43.22 per cent at a price not exceeding Rs 22 per share.

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