Aditya Birla Lifestyle Brands seeks approval for ESOP scheme covering 1.5% of capital
- Aditya Birla Lifestyle Brands seeks approval for ESOP Scheme 2026 covering 1.50% of paid-up capital
- Scheme allows grants of options and PSUs exercisable into 1,83,07,800 equity shares of ₹10 face value
- Maximum vesting period extended to 5 years from 4 years under the previous scheme
- Remote e-voting for shareholders open from October 4 to November 2, 2026
*this image is generated using AI for illustrative purposes only.
Aditya Birla Lifestyle Brands Limited has initiated a postal ballot process to seek shareholder approval for the adoption of its Employee Stock Option and Performance Stock Unit Scheme 2026. The proposed scheme allows for the grant of stock options and performance stock units exercisable into up to 1,83,07,800 equity shares, representing 1.50% of the company’s paid-up equity share capital.
The board of directors approved the scheme on August 1, 2026, based on the recommendation of the Nomination and Remuneration Committee. The resolution also seeks consent to extend the benefits of this scheme to employees of subsidiary companies, both in India and abroad. The move aims to align employee interests with long-term shareholder value and enhance talent retention.
Key terms of the ESOP scheme
The ABLBL ESOP Scheme 2026 introduces specific changes compared to the previous ABLBL Scheme 2025. Notably, the maximum vesting period has been increased to 5 years from the previous limit of 4 years. The scheme operates under a dilution route, meaning shares will be issued from fresh allotment rather than secondary acquisition.
| Feature | Details |
|---|---|
| Total Shares Available | 1,83,07,800 (1.50% of paid-up capital) |
| Max Per Employee | 61,02,600 (0.50% of paid-up capital) |
| Face Value | ₹10 per share |
| Minimum Vesting Period | 1 year |
| Maximum Vesting Period | 5 years |
| Exercise Period | Up to 5 years from vesting date |
| Pricing Formula | Options: Market Price; PSUs: Face Value |
The exercise price for Options will be the market price of the equity shares one day prior to the grant date. For Performance Stock Units (PSUs), the exercise price is set at the face value of ₹10 per share. The Nomination and Remuneration Committee serves as the Compensation Committee responsible for administering the scheme.
Voting timeline and eligibility
Shareholders whose names appear in the Register of Members or List of Beneficial Owners as on the cut-off date of September 30, 2026, are eligible to vote. The remote e-voting period commenced on Sunday, October 4, 2026, at 9:00 am and will conclude on Monday, November 2, 2026, at 5:00 pm.
Voting results are scheduled to be declared on or before Wednesday, November 4, 2026. Members can cast their votes electronically through platforms provided by NSDL, CDSL, or the company’s Registrar and Transfer Agent, MUFG Intime India Private Limited. Hard copies of the postal ballot notice will not be dispatched; all communications are being sent via electronic mode only.
What the numbers show
The scheme caps individual grants at 0.50% of the paid-up equity share capital, while the aggregate pool is capped at 1.50%. This structure suggests a broad-based distribution strategy rather than concentration among a few key executives, although the board retains discretion to adjust these limits in the event of corporate actions like bonus issues or stock splits. The shift in vesting timelines from 4 to 5 years indicates a strategic emphasis on longer-term employee retention and performance alignment.
Historical Stock Returns for Aditya Birla Lifestyle Brands
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.72% | -6.73% | -12.01% | -15.63% | -43.99% | -53.08% |
How might the dilution from the 1.50% share issuance impact ABLBL's earnings per share (EPS) in the coming fiscal years?
What specific performance metrics will the Nomination and Remuneration Committee use to determine PSU vesting under the new 2026 scheme?
How does the extension of ESOP benefits to global subsidiary employees align with Aditya Birla Group's broader international expansion strategy?
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