NIIT sets aside 5% equity for employees

NEW DELHI: Shareholders of Indian computer education firm NIIT Ltd. have approved an employee stock option scheme which will give an additional five per cent of the firm's issued equity to its staff, a company statement said on Monday.

"Shareholders...have approved an additional five per cent equity amounting to 1.93 million shares to be offered through its employee stock option scheme (ESOS)," the statement said.

In April last year, NIIT set aside an equal percentage of shares to be distributed to its employees.

"Out of this, a grant of 1.812 million shares has been made, covering 1,451 employees," the statement said.

NIIT is India's largest computer education company with over 2,000 centers in India and abroad. The firm also provides software services to clients across the globe.

NIIT convened its eighteenth annual general meeting on Monday and also declared a dividend of 42.5 per cent.

The firm will declare its first quarter results on Tuesday. A Reuters poll of 10 brokerages estimated an 83.88 per cent rise in NIIT's October-December net profit to Rs 340.5 million ($7.34 million). Estimates of the increase ranged widely from 46.3 per cent to 104 per cent.

The same poll forecast on average a 36.7 per cent rise in net sales to Rs 1.68 billion.

At 3:25 p.m., NIIT was quoted Rs 40.45 lower at Rs 1,719, down from its day's high of Rs 1,823.90.

(C) Reuters Limited 2001.