HDFC Life Insurance Company Limited has taken a significant step to enhance employee ownership and alignment with shareholder interests. The company's Stakeholders Relationship Committee approved the allotment of 7,69,885 equity shares to eligible employees under various Employee Stock Option Schemes (ESOP) on December 17, 2025.

Key Details of the Latest Allotment

Updated Share Capital Structure

Following this latest allotment, HDFC Life's paid-up equity share capital has increased to ₹21,57,61,58,500.00, consisting of 2,15,76,15,850 equity shares with a face value of ₹10.00 each. This represents a marginal increase in the company's outstanding shares, reflecting its ongoing commitment to employee incentivization through stock options.

Strategic Significance of ESOP Implementation

Employee Stock Option Plans serve as a strategic tool for the insurance company to:

• Align employee interests with shareholder value creation
• Attract and retain top talent in the competitive insurance sector
• Provide additional compensation and wealth creation opportunities for workforce
• Foster a culture of ownership among employees

Regulatory Compliance and Transparency

The company has duly informed both the National Stock Exchange of India Limited and BSE Limited about this allotment under Regulation 30, ensuring transparency and compliance with listing regulations. This proactive disclosure demonstrates HDFC Life's commitment to maintaining good corporate governance practices.

Market Impact and Outlook

As the insurance sector in India continues to evolve, such employee-centric initiatives may play a crucial role in maintaining HDFC Life's competitive edge in talent management and organizational performance. The systematic approach to employee stock options reflects the company's long-term strategy for sustainable growth and stakeholder value creation.

HDFC Life Insurance Company , a leading player in India's insurance sector, has taken a significant step to align employee interests with company growth through a series of stock option grants. The company's Nomination & Remuneration Committee has approved a comprehensive package of employee stock options (ESOPs) and performance restricted stock units (RSUs), demonstrating its commitment to long-term employee retention and motivation.

Stock Option Grants Overview

HDFC Life has implemented a multi-tiered approach to its stock option grants, catering to different employee categories and vesting schedules. Here's a breakdown of the grants:

Vesting Schedules

The company has tailored vesting schedules to accommodate employees with varying tenure:

ESOP 2019 and ESOP 2022

• For employees with more than 12 months tenure:
  • 50% vesting on the 1st anniversary
  • 50% vesting on the 2nd anniversary
• For employees with less than 12 months tenure:
  • 50% vesting on the 3rd anniversary
  • 50% vesting on the 4th anniversary

ESOP 2025 and RSU 2025

• Uniform vesting schedule for all employees:
  • 30% vesting on the 1st anniversary
  • 30% vesting on the 2nd anniversary
  • 40% vesting on the 3rd anniversary

Exercise Periods

The exercise periods for the vested options vary by scheme:

• ESOP 2019 and ESOP 2022: 5 years from the date of vesting
• ESOP 2025 and RSU 2025: 4 years from the date of vesting

This structured approach to stock option grants reflects HDFC Life's strategic focus on employee retention and long-term value creation. By offering a mix of options with different vesting schedules and exercise periods, the company aims to cater to the diverse needs of its workforce while ensuring alignment with shareholder interests.

The significant number of options granted, particularly under the ESOP 2025 scheme, suggests a strong commitment to expanding employee ownership and participation in the company's future success. This move could potentially enhance HDFC Life's ability to attract and retain top talent in the competitive insurance industry.

As the Indian insurance sector continues to evolve, such employee incentive programs may play a crucial role in maintaining HDFC Life's position as a leading player in the market. Investors and market watchers will be keen to observe how these grants impact the company's performance and employee engagement in the coming years.