Mphasis grants 25,000 stock options, 12,000 RSUs to employees under ESOP 2016, RSU Plan 2021

ESOP in 2024: Mphasis Limited announced on November 11, 2024, that it has granted 25,000 stock options and 12,000 restricted stock units (RSUs) to eligible employees and its subsidiaries, effective November 7, 2024. 

The distribution, approved by the company’s ESOP Compensation Committee on November 9, follows the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021, as well as SEBI’s Listing Obligations and Disclosure Requirements Regulations, 2015.

Mphasis share price was trading in the green, up 0.43 per cent, at ₹2,870.25, on November 11, at 1:22 pm, on BSE.

Details of Mphasis ESOP

According to Mphasis, these stock options are part of its Employee Stock Option Plan 2016 (ESOP 2016) and come with an exercise price of ₹2,900 per option. These options will vest equally over five years, with an exercise period of 60 months post-vesting. Eligible employees who exercise their options will receive shares administered through the Mphasis Employees Equity Reward Trust. Under ESOP 2016, each option allows the holder to apply for one equity share valued at ₹10 per share.

Alongside the stock options, Mphasis has allocated 12,000 RSUs under its Restricted Stock Units Plan 2021 (RSU Plan 2021). These RSUs have an exercise price of ₹10 and follow a progressive vesting schedule over five years, with percentages set at 10 per cent, 20 per cent, 30 per cent, and 30 per cent across each year. The RSU plan accommodates both Indian and US-based employees, with the latter subject to provisions of the US Internal Revenue Code.

In line with the RSU Plan 2021, US-based employees will experience automatic vesting of RSUs, with shares transferred directly upon vesting by the Mphasis Employees Benefit Trust. Other RSU grantees have the option for either automatic exercise or a notice-based exercise, allowing for a flexible 60-month exercise period after each vesting date. As with stock options, RSU shares are administered through the Mphasis Employees Benefit Trust and allow cashless settlement.

Subramanian Narayan, Senior Vice President and Company Secretary of Mphasis Limited, submitted this notification to the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) in compliance with regulatory requirements.