Jan 31, 2025
January 2025 ESOPs News Roundup and Upcoming Budget Expectations
In January 2025, several notable companies engaged in significant ESOP activities, showcasing their commitment to employee engagement and retention
Welcome back to another edition of Fables of ESOPs, where we bring you the latest updates on employee stock ownership movements across industries. February 2025 saw a flurry of ESOP-related activities, from major stock allotments to new policy implementations and liquidity events. Companies across sectors, including fintech, mobility, banking, and technology, continue to recognize the power of ESOPs in fostering employee ownership, retention, and wealth creation.
This month, we witnessed significant allotments from industry giants like Swiggy, EID Parry, and Transport Corporation of India, while Capgemini introduced an ambitious ESOP plan covering 97% of its workforce. Rapido launched its first-ever ESOP liquidation program, giving employees the opportunity to cash in on their stock options. However, despite these advancements, the Union Budget 2025 remained silent on long-anticipated ESOP tax reforms, leaving many startup employees facing continued financial uncertainty.
Let’s get into the key ESOP developments from February 2025!
The Union Budget 2025 did not address ESOP tax reforms, leaving Indian startup employees facing continued uncertainty. Currently, ESOPs are taxed twice—at exercise and sale—creating a significant financial burden. Employees often struggle to secure funds for tax payments, as unlisted company shares are not accepted as collateral. While deferred tax benefits exist for select startups, most unlisted and growth-stage companies remain unsupported. Experts had hoped for a shift to single-point taxation, but no major changes were introduced.
Transport Corporation of India allocated 15,490 equity shares to employees via its Employee Stock Option Plan on February 22, 2025. Following this distribution, the company's total paid-up equity shares increased from 7,65,93,272 to 7,66,08,762 shares, each with a face value of Rs. 2. As a result, the company's paid-up equity share capital rose from Rs. 15,31,86,544 to Rs. 15,32,17,524.
On February 25, 2025, EID Parry (India) distributed 112,735 equity shares as part of its Employee Stock Option Plan (ESOP). Following this allocation, the company's total issued, subscribed, and paid-up equity share capital increased from Rs. 17,76,65,559 to Rs. 17,77,78,294, now consisting of 17,77,78,294 equity shares with a face value of Re.1 each.
Nykaa allotted 90,500 equity shares under its ESOP scheme, valued at ₹1.49 crore based on an NSE price of ₹165 per share. The newly allotted shares will hold the same rights as existing shares. In Q3 FY25, Nykaa reported a 27% YoY revenue growth to ₹2,267 crore and a 60% rise in profit to ₹26 crore. The company has been consistently allotting ESOP shares, with 4.8 lakh shares issued in Q3 FY25 and additional allotments throughout the year.
SaaS-based B2B fintech firm Perfios has launched the “Perfios Employee Stock Option Plan 2025-A.” Approved by the board, the plan includes 2,05,764 employee stock options, as per regulatory filings. Each ESOP will convert into equity shares with a four-year vesting period. Fintrackr estimates the plan's total value at approximately ₹645 crore (around $76 million).
On February 28, 2025, Paisalo Digital allotted 3,72,517 equity shares under its Employee Stock Ownership Plan (ESOP). Following this allotment, the company's paid-up equity share capital increased to ₹90,21,18,289, comprising 90,21,18,289 equity shares with a face value of ₹1 each.
On February 27, 2025, IndusInd Bank allocated 9,000 stock options to employees under its Employee Stock Option Plan (ESOP).
Capgemini has introduced its 11th Employee Share Ownership Plan (ESOP), allowing around 97% of its workforce to become company shareholders. With a significant majority of its 1.75 lakh employees based in India, the initiative aims to enhance alignment with the company’s growth, boost job satisfaction, and encourage long-term commitment.
On February 18, 2025, Borosil Scientific released 8,235 equity shares as part of its Employee Stock Option Plan (ESOP). Following this issuance, the company's paid-up equity share capital has increased to Rs. 8,89,17,307, now consisting of 8,89,17,307 equity shares with a face value of Re. 1 each.
Mobility startup Rapido has introduced its first-ever Employee Stock Ownership Plan (ESOP) liquidation program, allowing current and former employees to sell a portion of their vested ESOP units. This initiative aims to enhance employee satisfaction, retention, and wealth creation while creating a culture of shared success. The program reflects Rapido’s commitment to recognizing and rewarding employee contributions, driving significant growth.
ideaForge Technology has allotted 31,716 equity shares with a face value of ₹10 each under the ideaForge Employees Stock Option Scheme, 2018. Following this allotment, the company's paid-up capital has increased from ₹43,04,52,180 (4,30,45,218 equity shares) to ₹43,07,69,340 (4,30,76,934 equity shares), all fully paid up.
Food aggregator Swiggy has allotted 8,64,417 equity shares under its Employee Stock Option Plan (ESOP) 2021, following the approval of its Finance and General Management Committee. With this allotment, the company's paid-up equity share capital has increased from ₹2,281,785,382 to ₹2,282,649,799. Based on Swiggy’s closing share price of ₹354.3, the newly allocated shares are valued at approximately ₹30 crore. The company is completing the formalities for listing the allotted shares.
That wraps up this edition of Fables of ESOPs! February 2025 was an eventful month, with significant stock allotments, new ESOP plans, and liquidity programs shaping the landscape. While companies continue to empower employees through stock ownership, the absence of ESOP tax reforms in Budget 2025 remains a key discussion point.
Stay tuned as we track the latest ESOP developments in the coming months. Look out for our March 2025 ESOP Roundup, where we’ll bring you the most important updates, trends, and insights from the world of employee stock ownership!
