In the year 1971, Carolyn Davidson, a student of Graphic designing, sketched the mark of the right tick on a paper. At that point, she was not aware of the fact that the same mark will make her a billionaire one day. We all know this mark as the iconic logo for Nike. The founder of the company Phil Knight offered a 3 percent of ESOP (Employee stock ownership plan) to her she was not aware of the fact that fifteen years down the line the ESOP Valuation of these shares will first make her a millionaire and then a billionaire (Nike Logo Evolution – The $35 Swoosh, 2018).
Top Ten Start-Up Companies of India Are Buying Back ESOP’s
Those who are keen to invest in the start-up companies would definitely show some interest when we will tell them that the top ten start-up companies listed by linked in have already started the process ESOP evaluation. The recent example of ESOP Valuation belongs to OYO. OYO has finally started to implement its ESOP Valuation program, and in the first year, they will buy back shares worth fifty crores (Bansal, 2019).
ESOP Valuation Does Make a Difference!
Almost a year ago when Wall Mart purchased stakes in Flipkart India the valuation of the employees of this company increased. Within no time the share of Flipcart also saw a boom. According to an estimate ESOP Valuation of Flipkart added 1.5 Billion dollars in their kitty prior to the deal with the Wallmart (Rathore, 2019). In general ESOP Valuation based shares act as a dormant share for any company. However, when they sense that after making some moves in the market the share prices will shoot up then they prefer to purchase the shares of ESOP Valuation back. First Wallmart followed by OYO, the trend of buying back the ESOP Valuation based shares is catching up.
As an investor, you can treat it as an indicator and if you wish to explore the details then executives working under the umbrella of RESURGENT INDIA can clear the picture for you.
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Thanks For Sharing. Especia Associates ESOP Valuation Consultants. ESOP valuation in India is governed by the ICAI's guidance note 18 on accounting for employee share-based payments. ESOPs can be valued using the Intrinsic Value approach, which employs the Income, Asset, or Market Approach. if you need ESOP Valuation Consultants call at 9310165114 or visit us ESOP Valuation Consultants
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