HDFC AMC has announced the grant of 58,700 equity shares to its eligible employees through the Employee Stock Options and Performance-linked Stock Units Scheme 2025. The Nomination & Remuneration Committee of the Board of Directors approved this grant on January 14, 2026, following shareholder approval obtained through a special resolution via postal ballot on June 6, 2025.

Grant Details and Structure

The total grant comprises two distinct components designed to incentivize employee performance and retention:

The stock options were priced at ₹2,485.70 per option, representing the latest available closing price on the National Stock Exchange of India Limited as of January 13, 2026. The PSUs were granted at face value of ₹5.00 per unit, equivalent to the face value of the company's equity shares.

Vesting Schedule Framework

The scheme incorporates different vesting patterns for stock options and performance-linked stock units, reflecting their distinct purposes in employee compensation:

Employee Stock Options Vesting

Performance-linked Stock Units Vesting

The vesting schedules demonstrate a performance-oriented approach, with PSUs concentrated in later years to emphasize long-term commitment and achievement.

Exercise Timeline and Compliance

The scheme establishes specific exercise windows for both components. Vested stock options must be exercised within four years from their respective vesting dates, while performance-linked stock units carry a shorter exercise window of one year from vesting. This structure ensures timely conversion while providing flexibility for employees.

The entire scheme operates under the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021, ensuring full regulatory compliance. Each option and PSU, upon exercise, entitles the holder to one equity share of ₹5.00 face value in HDFC Asset Management Company Limited.

Strategic Employee Incentivization

This grant represents a significant investment in employee retention and performance alignment, with the total value exceeding ₹102.60 crores. The dual structure of immediate-vesting options and performance-linked units creates a balanced approach to employee compensation, combining steady incentives with performance-based rewards that vest primarily in the third and fourth years of the scheme.

HDFC AMC has officially announced its partnership with the International Finance Corporation (IFC) through a formal press release, confirming the collaboration for its Structured Credit Fund-I. The announcement marks a significant milestone in the asset management company's entry into India's rapidly expanding private credit market, with IFC serving as the anchor investor to enhance access to alternative debt financing for mid-market enterprises.

Fund Structure and Investment Commitments

The Structured Credit Fund-I has successfully completed its first close, securing substantial institutional backing from various investor categories. The fund structure demonstrates strong institutional confidence with commitments from institutional investors, family offices, and ultra-high net worth individuals.

Investment Strategy and Early Deployments

The fund targets mid-teen returns over a 4-6 year investment horizon, focusing on secured credit instruments across diversified sectors excluding real estate. HDFC AMC has demonstrated active deployment capabilities with early investments across multiple sectors to address diverse capital requirements.

Strategic Partnership Benefits

The collaboration brings together IFC's global expertise with HDFC AMC's local market knowledge. As stated by Navneet Munot, MD & CEO of HDFC AMC, the partnership is rooted in expanding access to appropriate financing for mid-sized enterprises that drive industrial output, employment and regional development. The fund will provide customized capital solutions with clear risk controls and close engagement with management teams.

Imad N Fakhoury, Regional Division Director for South Asia at IFC, highlighted that mid-market companies are central to the Government of India's vision of economic resilience and the World Bank Group's support for financial inclusion, positioning this collaboration as a pathway to job creation and sustainable development.

Market Opportunity and Growth Projections

The initiative addresses the structural underserving of India's mid-market segment, which remains one of the most dynamic pillars of the economy. The partnership comes at a strategic time when India's private credit market is projected to experience substantial expansion.

The collaboration supports India's renewed focus on strengthening manufacturing and advancing the Viksit Bharat vision, with the fund positioned to provide critical financing bridges that allow businesses to scale without compromising operational stability.