In a novel move, India’s largest private life insurer ICICI Prudential has allowed employees to encash their employee stock options (ESOPs), a rarity considering ICICI Pru is an unlisted company !The company has offered employees an opportunity to sell their shares at Rs.400 per share, which translates into a valuation of almost Rs.56,500 crore for the insurer. 

However, the buyback does not translate into gains for all, as the vesting price is the same at which new capital has been brought in. There is also no reduction in the company’s net worth, as the shares are being purchased by promoters ICICI and Prudential, who would be increasing their stake in the company.