hSenid ESOP will cover 3.62 million ordinary shares under a proposed new employee share option scheme, as hSenid Business Solutions PLC moves to strengthen employee retention and long-term engagement through equity-based incentives.
hSenid ESOP to replace unallocated shares under 2022 employee option plan
hSenid Business Solutions PLC has announced plans to establish a new Employee Share Option Plan (ESOP) that will utilise 3,618,580 ordinary shares left unallocated under its previous employee share ownership scheme. The proposal, approved by the company’s Board of Directors, is intended to continue rewarding and retaining employees while aligning their long-term interests with those of the company and its shareholders.
According to the company, the proposed hSenid ESOP will be available to eligible employees of hSenid Business Solutions and its subsidiaries. The scheme will also extend to selected fixed-term contract employees, with eligibility determined by the Board of Directors.
If all share options granted under the proposed plan are exercised, the company would issue new shares equivalent to approximately 1.22% of its enlarged issued share capital. The initiative reflects the company’s continued focus on employee ownership as part of its broader human capital strategy.
The new proposal follows the conclusion of the company’s previous Employee Share Option Plan, which was approved by shareholders in December 2022. That scheme authorised the granting of options over up to 10 million ordinary shares, representing approximately 3.49% of the company’s post-issue share capital at the time.
Following the issue of 8.56 million new shares through a scrip dividend in 2024, the available option pool under the scheme increased proportionately to 10.31 million shares. During the option grant period, which ran from 1 April 2023 to 6 December 2025, the company granted options covering approximately 6.69 million shares.
This left 3.62 million ordinary shares unallocated when the scheme concluded. Rather than allowing the remaining allocation to expire, the Board resolved to establish a fresh Employee Share Option Plan using the balance, enabling the company to continue offering share-based incentives without creating an entirely new allocation.
The company stated that the proposed hSenid ESOP complies with the relevant Colombo Stock Exchange (CSE) Listing Rules governing employee share option schemes. Before implementation, the proposal must receive approval in principle from the Colombo Stock Exchange for the issue and listing of the new shares.
In addition, shareholders will be required to approve the scheme through a special resolution at a General Meeting before the plan can take effect.
Employee share option plans have become an increasingly common feature of corporate remuneration strategies, particularly within the technology sector. Such schemes are designed to encourage long-term commitment by giving employees an opportunity to benefit directly from the company’s future growth and performance.
For listed technology companies, equity-based incentive programmes can also strengthen talent retention in highly competitive labour markets, where attracting and retaining skilled professionals remains a strategic priority.
As of the date of the announcement, hSenid Business Solutions reported stated capital of Rs. 1.03 billion and an issued ordinary share capital comprising 285.34 million shares.
The proposed hSenid ESOP represents the continuation of the company’s employee ownership strategy while making efficient use of shares that remained available under the previous scheme. Subject to regulatory clearance and shareholder approval, the plan is expected to provide an additional incentive mechanism that supports employee engagement and aligns workforce performance with the company’s long-term business objectives.