Hero MotoCorp grants 1.27 lakh RSUs and PRSUs to employees
Hero MotoCorp granted 1,27,056 RSUs and PRSUs to employees at ₹2 per share, with vesting periods ranging from three to four years. The grant includes 52,056 RSUs and 75,000 PRSUs, convertible into equity shares under SEBI (SBEB) Regulations, 2021. The move aims to align employee interests with long-term company performance.
*this image is generated using AI for illustrative purposes only.
Hero MotoCorp has granted 1,27,056 Restricted Stock Units (RSUs) and Performance Restricted Stock Units (PRSUs) to eligible employees as part of its employee incentive scheme. The Nomination & Remuneration Committee (NRC) approved the grant on June 24, 2026, with the units priced at the face value of ₹2 per share. This move aims to incentivize employees through equity ownership, aligning their interests with the company's long-term growth.
The grant comprises two categories of RSUs and one category of PRSUs. A total of 48,000 RSUs (A) will vest over three years in a ratio of 33.33%:33.33%:33.34%, while 4,056 RSUs (B) will vest over four years in equal annual installments of 25%. Additionally, 75,000 PRSUs were granted, which will vest after the completion of three years from the date of grant. All units are convertible into one equity share each, subject to compliance with the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2021, and the Company’s Employee Incentive Scheme 2014.
The vesting schedule allows employees to exercise their options within 24 months from the date of vesting. For RSUs (A), vesting commences at the end of the first year from the grant date, while RSUs (B) follow a four-year timeline. The PRSUs, however, have a performance-linked vesting condition that requires completion of three years before they can be exercised. The scheme is fully compliant with SEBI (SBEB) Regulations, 2021, ensuring transparency and adherence to regulatory standards.
The table below summarizes the key details of the grant:
| S. No. | Particulars | Details |
|---|---|---|
| 1 | Total RSUs (A) | 48,000 units vesting in 3 years (33.33%:33.33%:33.34%) |
| 2 | Total RSUs (B) | 4,056 units vesting in 4 years (25% annually) |
| 3 | Total PRSUs | 75,000 units vesting after 3 years |
| 4 | Exercise Price | ₹2 per unit (face value) |
| 5 | Exercise Window | Within 24 months from vesting date |
The grant underscores Hero MotoCorp's commitment to retaining talent and fostering a performance-driven culture. The company’s Employee Incentive Scheme 2014 governs the terms of these grants, ensuring alignment with shareholder value creation. The filing was submitted to the National Stock Exchange of India and BSE Limited by Prabhat Singh, Company Secretary & Compliance Officer.
Historical Stock Returns for Hero Motocorp
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.69% | -4.14% | -3.32% | -15.53% | +11.92% | +63.77% |
What specific performance metrics must be met for the 75,000 PRSUs to vest?
How will the issuance of these new shares impact Hero MotoCorp's existing earnings per share (EPS)?
Is this grant size indicative of a broader strategy to counteract talent turnover in the EV sector?
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