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SRA Systems may offer stocks to employees

According to S Srinivasan, chairman and managing director, SRA Systems, the company is still working out the modalities of implementing the employee stock option plan.

T O D A Y

• Fumigating time • Telecom pricing • Oracle CPG for India • SRA for ESOPs • BA-NIIT deal • Compaq project

N Sridharan, general manager, SRA Systems, says the company has earmarked about 500,000 shares for this, and is still looking into details such as forming a trust, the lock-in period and the terms of exercising the option.

Srinivasan said that an employee stock option plan would be put in place by the end of current financial year, while the company hopes to get listed within three years.

Baring Private Equity Partners India Limited, an ING Baring Group company that had picked up a 23 per cent stake in SRA Systems recently, is keen on SRA implementing a stock option plan for its employees, though the company has been contemplating it for over six months now.

Baring India had bought the shares at a premium of Rs 68 on a Rs 10 share. The book value of the shares could be more than this, but employees would be able to buy the stock at a discounted price.

The promoters of the company have a 36 per cent stake in SRA Systems, while Omron Corporation of Japan holds about 20 per cent.

Hong Kong-based Sonex Investments holds a 21 per cent stake in SRA.

SRA, which recorded a turnover of Rs 310 million in 1997-98, expects to achieve Rs 570-600 million during the current financial year and Rs 1 billion by 2000.

- Compiled from the Indian media

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