Tata Donnelly Plans Stock Option For Employees

Tata Donnelly Ltd (TDL) has proposed to offer stock options by way of ordinary shares in one or more trenches to the permanent employees of the company.

This is part of the company's move to attract and retain the best talent from the industry as it is set to enter the next millennium by keeping pace with the graphic-rich print designing and information services. This calls for the employing of skilled software personnel for designing and graphic works. Its proposal to consider introducing a stock option scheme will also include its managing and whole time directors. The shares so issued will rank pari passu with the ordinary shares of the company.

 

The plan is to issue ordinary shares of the company of the face value of Rs 10 each, not exceeding five per cent, to its permanent employees. The subscription will be at a price to be fixed at the time of allotment.

However, the company has made it clear that the issue of any such stock option shall not involve allocation or options representing more than 10 per cent of the company's subscribed and paid-up capital at any time.

TDL has proposed to move this issue as a special resolution at its annual general meeting on August 20.

Tata Donnelly, with its expertise and capacity in print, plans to enter `virtual publishing' and information services in the next century as part of its business redefining process. TDL publishes many business directories including Tata Press Yellow Pages. Editions of the Yellow Pages are now published in nine cities. TDL, whose commercial printing operations were affected last year by low demand, has also introduced a `voluntary retirement scheme' (VRS) to its employees. The VRS has been approved by the Income Tax authorities as part of a cost-cutting measure.

The company's divisions like Touchstone Products specialises in corporate stationery. It also started a wholly owned subsidiary print design agency called TADDSCO Promotions Ltd. Its own direct marketing outfit is known as Tata Press Database Services. TDL released its Yellow Pages for Chennai, Mumbai and New Delhi on CD-ROM and the Exporters' Pages on the Internet. Its database service division recently entered into offering turnkey services.

Its special interest publishing division has also launched its first title, Better Photography.