Vedanta Iron & Steel approves ESOP and ESPP for employees
Vedanta Iron & Steel Ltd approved two employee benefit schemes on July 29, 2026, covering up to 5% of its paid-up capital. The ESOP plan allows 16,62,04,184 shares at face value, while the ESPP plan covers 2,93,30,150 shares at nil or determined prices. Both require shareholder approval and exclude promoters and major shareholders.
*this image is generated using AI for illustrative purposes only.
The Board of Directors of Vedanta Iron & Steel approved the formulation of the Vedanta Iron And Steel Limited Employee Stock Option Plan 2026 (VISL ESOP 2026) and the Vedanta Iron And Steel Limited Employee Stock Purchase Plan 2026 (VISL ESPP 2026) on July 29, 2026. The dual-scheme approach allows eligible employees to acquire equity shares, aligning their interests with long-term value creation. The total pool covers up to 5% of the company’s paid-up share capital, split between options granted at face value and shares offered at nil or determined prices. Implementation requires subsequent shareholder approval.
The disclosure was made under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI circular HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. The Nomination & Remuneration Committee recommended the plans to the Board, which met from 03:50 p.m. IST to 04:28 p.m. IST. The schemes comply with the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021.
Scheme Structure and Allocation
The VISL ESOP 2026 permits grants of up to 16,62,04,184 shares, representing 4.25% of the total paid-up share capital. The exercise price is set at the face value of ₹ 1 per share, or such other price as approved by law. Options vest between one and five years from the grant date, contingent on performance parameters set by the Nomination & Remuneration Committee. Once vested, options must be exercised within eight months.
The VISL ESPP 2026 covers up to 2,93,30,150 shares, or 0.75% of the paid-up capital. The purchase price per share is nil or as determined by the committee. Shares transferred to employees under this plan carry a one-year lock-in period from the date of transfer.
| Feature | VISL ESOP 2026 | VISL ESPP 2026 |
|---|---|---|
| Max Shares | 16,62,04,184 | 2,93,30,150 |
| % of Paid-up Capital | 4.25% | 0.75% |
| Price | ₹ 1 per share (face value) | Nil or NRC-determined |
| Vesting Period | 1–5 years | Offer period specified |
| Exercise Window | 8 months post-vesting | N/A |
| Lock-in | N/A | 1 year post-transfer |
Eligibility and Trust Implementation
Both schemes are open to eligible employees of Vedanta Iron And Steel Limited, its holding company, and subsidiaries. Promoters, promoter group members, independent directors, and persons holding more than 10% equity are excluded. The schemes will be implemented through the Vedanta Iron And Steel Limited ESOS Trust (VISL ESOS Trust), which will acquire existing equity shares via secondary acquisition from the open market. The total shares held by the trust under all outstanding schemes must not exceed 5% of the paid-up equity share capital at any time. No grants or offers have been made under either scheme as of the filing date.
Historical Stock Returns for Vedanta Iron & Steel
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +4.30% | -5.61% | -5.06% | +46.15% | +46.15% | +46.15% |
How might the secondary market acquisition of shares by the VISL ESOS Trust impact short-term liquidity and price volatility of Vedanta Iron & Steel stock?
What specific performance metrics will the Nomination & Remuneration Committee likely prioritize for the 1–5 year vesting period to ensure alignment with long-term value creation?
Given the exclusion of promoters and major shareholders, how will this ESOP structure influence retention rates among mid-to-senior management levels?
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