Eternal Limited has announced the approval of a substantial Employee Stock Option Plan (ESOP) grant totaling 42,901,017 stock options for eligible employees. The company's Nomination and Remuneration Committee approved this grant through a circular resolution on January 1, 2026, under three distinct ESOP schemes.

ESOP Grant Distribution

The stock options have been allocated across three different schemes, with the majority concentrated in the newest plan:

Key Terms and Conditions

The stock options are structured with employee-friendly terms and regulatory compliance. Each stock option is convertible into one fully paid-up equity share with a face value of ₹1. The total coverage includes 43,028,298 equity shares of ₹1 face value each, incorporating requisite adjustments for corporate actions as provided under the respective ESOP schemes.

Exercise Parameters

The exercise price has been set at ₹1 per stock option across all schemes. The exercise periods vary depending on the specific ESOP scheme:

Regulatory Compliance

The ESOP schemes comply with SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. The disclosure was made pursuant to Regulation 30 of the SEBI Listing Regulations, ensuring transparency for stakeholders. The schemes include provisions for handling stock options in various employment scenarios including death, permanent incapacity, resignation, termination, retirement, and abandonment.

Share Allotment Details

Equity shares allotted upon exercise of these stock options will not be subject to lock-in restrictions. This provides flexibility for employees once they exercise their options and receive the underlying shares. The company has structured the plans to provide long-term incentives while maintaining compliance with regulatory requirements and corporate governance standards.

Eternal Limited has received a positive assessment from global brokerage firm Jefferies, which has maintained its Buy rating on the stock while setting a price target of ₹480 per share.

Analyst Recommendation Details

The recommendation from Jefferies indicates confidence in Eternal's business fundamentals and growth prospects. The ₹480 price target suggests potential upside for investors considering the stock.

Company Profile

Eternal Limited operates in the E-Commerce/App based Aggregator sector and is classified as a large-cap company. The company maintains a significant market presence with substantial market capitalization.

Market Positioning

As a large-cap stock in the E-Commerce/App based Aggregator space, Eternal Limited represents a significant player in the digital economy sector. The positive analyst coverage from Jefferies adds to the investment case for the company.

The Buy rating and price target of ₹480 reflect Jefferies' assessment of the company's valuation and future performance potential in the competitive e-commerce and app-based services market.