Employee Shares Offered
Employee Shares Offered are shares reserved for company employees, usually at a discounted price.
Employee Shares Offered refer to a portion of shares set aside for employees during an IPO or through ESOPs.
These shares are often given at a lower price or with benefits to encourage employees to become part-owners of the company.
This helps:
Motivate employees
Align their interests with company growth
Improve employee retention
Sometimes, employees may need to hold these shares for a certain period before selling them.
Example:
If a company reserves shares for employees at ₹90 while the public price is ₹100, employees get an opportunity to invest at a lower price.