Nov 30, 2024
November 2024 ESOP News Roundup: IdeaForge, Mphasis, Kfin, Paytm, AppsForBharat, Delhivery, Nykaa, Swiggy IPO, Yes Bank
November saw startups boost ESOPs, empowering employees with expanded equity and buybacks.
Welcome to the last edition of FOE 2024! As December wraps up and we step into 2025, 2024 has witnessed a surge in ESOP activity, with several prominent companies issuing and expanding their stock option plans. Noteworthy names like Paytm and Zetwerk have made significant strides in boosting their ESOP pools, preparing for future growth and potential IPOs. Paytm remains focused on rewarding and retaining its workforce, while Zetwerk’s large ESOP expansion signals its strategic drive ahead of its IPO.
Other major players, such as Razorpay, Axis Bank, and MedPlus Health Services, have also joined the movement, highlighting the growing importance of ESOPs in employee engagement and retention.
In this roundup, we’ll explore the key ESOP activities of December and how these moves are shaping companies to prepare for the challenges and opportunities of 2025.
In 2024, 26 unlisted startups in India enabled employees to profit from ESOP buybacks via pre-IPO and secondary deals, up from 19 in 2023. However, the figure was lower than the 37 startups seen in 2021 and 2022. Qapita’s senior VP Vikram Sivaraman attributed this growth to the IPO market's strong performance, with 12 startups going public during the year. The total buyback value reached $252 million in 2024, a notable increase from the adjusted $125 million in 2023, highlighting a gradual recovery in the market.
In 2024, 23 startups implemented ESOP buyback programs, enabling more than 3,000 employees to earn over ₹1,448 crore. This marked a significant increase compared to 2023, when only 12 startups offered buybacks, with $700 million of the $850 million coming from Flipkart. A comprehensive list of Indian startups rewarding employees through buybacks highlights the growing adoption of these schemes in wealth creation.
Angel One has allotted 2,608 equity shares, each with a face value of ₹10, to eligible employees under the Angel Broking Employee Long Term Incentive Plan 2021. Following this allotment, the company's issued, subscribed, and paid-up capital increases to ₹9,02,50,751, with a total of 90,25,07,510 equity shares at a face value of ₹10 each.
Marking its decade milestone, Razorpay has awarded ESOPs worth ₹1 lakh to all employees. This initiative adds to its history of ESOP programs, starting with a buyback in 2018 that enabled 140 employees to cash out their vested shares. In 2022, a $75 million buyback benefited 650 current and former employees, showcasing Razorpay's commitment to employee wealth creation.
On December 30, 2024, CG Power & Industrial Solutions allocated 12,500 equity shares through its ESOP program. Following this issuance, the company's paid-up equity share capital rose from ₹3,05,74,88,888 to ₹3,05,75,13,888, now comprising 1,52,87,56,944 equity shares with a face value of ₹2 each.
On December 30, 2024, Rishabh Instruments strengthened its employee ownership initiative by allotting 2,500 equity shares under its ESOP program. This move increased the company’s total paid-up equity share capital to ₹38.22 crore, comprising 3,82,21,424 fully paid-up shares with a face value of ₹10 each.
On December 30, 2024, Borosil Scientific allotted 5,000 equity shares under its ESOP scheme. This issuance increased the company’s paid-up equity share capital to ₹8.89 crore, comprising 8,89,02,082 equity shares with a face value of ₹1 each.
On December 10, 2024, Wipro allotted 25,38,258 equity shares under the ADS Restricted Stock Unit Plan 2004, following the exercise of ESOPs by employees.
Zepto raised over $1 billion in just five months, showing that growth continues to drive high valuations in large market sectors. However, industry sources reveal that Zepto has burned through approximately ₹1,200 crore in the last quarter, significantly higher than its competitor Swiggy Instamart, primarily for user acquisition via marketing, discounts, and staffing expenses.
Jindal Stainless Limited, India’s leading stainless steel manufacturer, has granted 12,42,736 stock options to senior employees under its Employee Stock Option Scheme 2023. The options, offered at a discounted price, consist of an equal mix of ESOPs and Restricted Stock Units (RSUs). This follows the company’s previous ESOP announcement in December 2023. The stock options will vest over four years and are tied to performance-based conditions.
On December 20, 2024, Crompton Greaves Consumer Electricals allotted 19,763 equity shares under its ESOP scheme. This allotment increased the company’s paid-up capital from ₹1,28,74,58,418 to ₹1,28,74,97,944, with the total number of equity shares rising from 64,37,29,209 to 64,37,48,972, each with a face value of ₹2.
On December 19, 2024, Aarti Industries allotted 660 equity shares under its ESOP scheme. As a result, the company’s paid-up equity share capital increased from ₹1,81,25,96,250, comprising 36,25,19,250 shares of ₹5 each, to ₹1,81,25,99,550, with 36,25,19,910 shares of ₹5 each.
KFin Technologies allotted 30,800 equity shares under its ESOP scheme. Following this, the company’s issued, subscribed, and paid-up equity share capital increased from ₹171,80,22,000, comprising 17,18,02,200 shares of ₹10 each, to ₹171,83,30,000, with 17,18,33,000 shares of ₹10 each.
On December 17, 2024, Axis Bank allotted 1,55,783 equity shares of ₹2 each under its ESOP/RSU Scheme. Following this, the bank’s paid-up share capital increased from ₹6,189,617,698, comprising 3,094,808,849 shares, to ₹6,189,929,264, with 3,094,964,632 shares of ₹2 each.
On December 18, 2024, MedPlus Health Services allotted 1,46,675 equity shares under its ESOP scheme. As a result, the company’s paid-up equity share capital increased to ₹23.94 crore, with a total of 11,96,93,831 equity shares in circulation.
Zetwerk, the Bengaluru-based B2B e-commerce unicorn, has added $64 million (₹541 crore) worth of stock options to its ESOP Plan 2018. This expansion, marking the company’s first ESOP increase of the year, reflects its strategic focus on employee motivation as it prepares for an IPO. The board approved an amendment to the plan, adding 1,25,03,900 new stock options, bringing the total value of the ESOP pool to ₹1,145 crore ($136 million)—a 90% increase aimed at bolstering employee retention and engagement during this pivotal growth phase.
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