{"id":539,"date":"2026-08-08T09:42:25","date_gmt":"2026-08-08T09:42:25","guid":{"rendered":"https:\/\/www.ibgrid.com\/blog\/?p=539"},"modified":"2026-08-08T10:08:27","modified_gmt":"2026-08-08T10:08:27","slug":"esops-guide-indian-business-owners","status":"publish","type":"post","link":"https:\/\/www.ibgrid.com\/blog\/esops-guide-indian-business-owners\/","title":{"rendered":"ESOPs in India: A Practical Guide for Business Owners and Promoters"},"content":{"rendered":"\n<p><strong>Who this guide is for:<\/strong> Indian business owners and promoters with \u20b910 crore to \u20b9200 crore annual turnover who are considering ESOPs, whether to retain key employees, prepare for a PE fundraise, or structure a business exit. This is not a startup-focused guide. It is written from the perspective of someone advising mid-market companies on real transactions.<\/p>\n\n\n\n<p><strong>What this guide covers:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>What an ESOP actually is under Indian law<\/li>\n\n\n\n<li>The legal requirements you need to get right<\/li>\n\n\n\n<li>How ESOPs are taxed, with a worked example<\/li>\n\n\n\n<li>The dilution maths every promoter should understand<\/li>\n\n\n\n<li>What happens to ESOPs when you sell your company<\/li>\n\n\n\n<li>How ESOPs affect your financial statements and EBITDA<\/li>\n\n\n\n<li>The proposed Corporate Laws Amendment Bill, 2026<\/li>\n\n\n\n<li>Practical guidance for business owners<\/li>\n\n\n\n<li>Frequently asked questions<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<p>In over two decades of advising on transactions, one pattern I have noticed consistently is that ESOPs tend to be one of the least understood elements of a deal, not because they are inherently complex, but because they sit at the intersection of company law, tax law, financial statements, and deal structuring, and most promoters encounter them for the first time during a live transaction.<\/p>\n\n\n\n<p>Typically, the first time a business owner hears the term &#8220;ESOP&#8221; in a meaningful way is when a PE investor&#8217;s term sheet includes a line like &#8220;10% ESOP pool to be created pre-investment.&#8221; It sounds reasonable. The promoter agrees. And it is only later, sometimes months later, when someone walks them through the cap table maths, that they realise what that clause actually cost them in ownership terms.<\/p>\n\n\n\n<p>This is not a criticism of anyone. It is simply a knowledge gap that exists because ESOPs are rarely discussed in the context that matters most to a business owner: what they do to your economics, your control, and your negotiating position.<\/p>\n\n\n\n<p>ESOPs are a powerful tool. They align employee incentives with company performance. They help retain key talent without immediate cash outflow. And when structured well, they can make a transaction smoother for everyone involved. But they are also a regulated issuance of equity, one that permanently changes your cap table, creates tax obligations, affects your financial statements, and influences how buyers and investors evaluate your company.<\/p>\n\n\n\n<p>This article is written for Indian business owners with \u20b910 crore to \u20b9200 crore turnover who want to understand ESOPs at a practical level, the legal requirements, the tax treatment, the dilution maths, and the M&amp;A implications, so that when the moment comes to make a decision about them, it is an informed one.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_86 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.ibgrid.com\/blog\/esops-guide-indian-business-owners\/#Two_Situations_Worth_Understanding_Upfront\" >Two Situations Worth Understanding Upfront<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.ibgrid.com\/blog\/esops-guide-indian-business-owners\/#The_Legal_Framework_What_You_Actually_Need_to_Do\" >The Legal Framework, What You Actually Need to Do<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.ibgrid.com\/blog\/esops-guide-indian-business-owners\/#The_Tax_Reality_And_Why_It_Catches_People_Off_Guard\" >The Tax Reality, And Why It Catches People Off Guard<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.ibgrid.com\/blog\/esops-guide-indian-business-owners\/#The_Dilution_Maths\" >The Dilution Maths<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.ibgrid.com\/blog\/esops-guide-indian-business-owners\/#What_Happens_to_ESOPs_When_You_Sell_the_Company\" >What Happens to ESOPs When You Sell the Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.ibgrid.com\/blog\/esops-guide-indian-business-owners\/#How_ESOPs_Appear_in_Your_Financial_Statements\" >How ESOPs Appear in Your Financial Statements<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.ibgrid.com\/blog\/esops-guide-indian-business-owners\/#The_Corporate_Laws_Amendment_Bill_2026_What_May_Be_Coming\" >The Corporate Laws Amendment Bill, 2026, What May Be Coming<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.ibgrid.com\/blog\/esops-guide-indian-business-owners\/#What_Experienced_Advisors_Typically_Recommend\" >What Experienced Advisors Typically Recommend<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.ibgrid.com\/blog\/esops-guide-indian-business-owners\/#A_Quick_Self-Assessment\" >A Quick Self-Assessment<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.ibgrid.com\/blog\/esops-guide-indian-business-owners\/#How_IBGrid_Supports_This_Process\" >How IBGrid Supports This Process<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.ibgrid.com\/blog\/esops-guide-indian-business-owners\/#Frequently_Asked_Questions\" >Frequently Asked Questions<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.ibgrid.com\/blog\/esops-guide-indian-business-owners\/#Can_a_private_limited_company_issue_ESOPs_in_India\" >Can a private limited company issue ESOPs in India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.ibgrid.com\/blog\/esops-guide-indian-business-owners\/#What_is_the_minimum_vesting_period_for_ESOPs_in_India\" >What is the minimum vesting period for ESOPs in India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.ibgrid.com\/blog\/esops-guide-indian-business-owners\/#Are_promoters_eligible_for_ESOPs\" >Are promoters eligible for ESOPs?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.ibgrid.com\/blog\/esops-guide-indian-business-owners\/#When_are_ESOPs_taxed\" >When are ESOPs taxed?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.ibgrid.com\/blog\/esops-guide-indian-business-owners\/#Has_ESOP_taxation_changed_under_the_Income_Tax_Act_2025\" >Has ESOP taxation changed under the Income Tax Act, 2025?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.ibgrid.com\/blog\/esops-guide-indian-business-owners\/#What_happens_to_ESOPs_when_a_company_is_acquired\" >What happens to ESOPs when a company is acquired?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.ibgrid.com\/blog\/esops-guide-indian-business-owners\/#How_does_an_ESOP_pool_affect_my_valuation_during_a_PE_fundraise\" >How does an ESOP pool affect my valuation during a PE fundraise?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.ibgrid.com\/blog\/esops-guide-indian-business-owners\/#Does_the_ESOP_expense_affect_my_EBITDA\" >Does the ESOP expense affect my EBITDA?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.ibgrid.com\/blog\/esops-guide-indian-business-owners\/#What_filings_are_required_for_an_ESOP_scheme\" >What filings are required for an ESOP scheme?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.ibgrid.com\/blog\/esops-guide-indian-business-owners\/#What_is_the_difference_between_ESOPs_and_sweat_equity_shares\" >What is the difference between ESOPs and sweat equity shares?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/www.ibgrid.com\/blog\/esops-guide-indian-business-owners\/#Lets_Discuss\" >Let&#8217;s Discuss<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Two_Situations_Worth_Understanding_Upfront\"><\/span>Two Situations Worth Understanding Upfront<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Before I get into the mechanics, let me share two scenarios I have encountered in advisory work. They illustrate why understanding ESOPs at a structural level matters.<\/p>\n\n\n\n<p><strong>When informal promises meet formal due diligence.<\/strong> A promoter of a \u20b960 crore company had been promising &#8220;shares&#8221; to his top managers for years, verbally, as a gesture of appreciation. There was no documented scheme, no board resolution, no shareholder approval, no filing with the RoC. When a PE investor entered due diligence, the first question from their legal team was: &#8220;Where is the ESOP documentation?&#8221; There was none. The promises had no legal standing under <a href=\"https:\/\/www.equitylist.co\/blog-post\/esop-companies-act\">Section 62(1)(b) of the Companies Act, 2013<\/a>, but the employees could reasonably argue they had been given an expectation of equity. The PE fund&#8217;s lawyers flagged it as a contingent liability. It took three months and considerable legal effort to resolve, time and cost that proper documentation from the outset would have avoided entirely.<\/p>\n\n\n\n<p>The lesson is a quiet one: options issued without a formally adopted scheme, approved by shareholders and filed with the RoC via <a href=\"https:\/\/www.equitylist.co\/blog-post\/esop-scheme-india\">Form MGT-14<\/a>, do not have legal standing. It is worth getting this right from the beginning.<\/p>\n\n\n\n<p><strong>When the cap table reveals a surprise.<\/strong> In another transaction, a PE investor&#8217;s term sheet included: &#8220;Pre-money valuation of \u20b980 crore, inclusive of a 10% ESOP pool to be created prior to investment.&#8221; The promoter, understandably, focused on the \u20b980 crore valuation. The word &#8220;inclusive&#8221; and the phrase &#8220;prior to investment&#8221; did not register as significant. After the deal closed, the promoter held 67.5% instead of the 75% they had expected. The difference, 7.5 percentage points on a \u20b9100 crore post-money company, was \u20b97.5 crore in economic value.<\/p>\n\n\n\n<p>The investor was not doing anything unusual. This is standard market practice. But it is the kind of outcome that can be navigated much better when the promoter understands the dilution mechanics in advance.<\/p>\n\n\n\n<p>I will walk through the exact maths of both scenarios later in this article.<\/p>\n\n\n\n<p>What an ESOP Actually Is Under Indian Law<\/p>\n\n\n\n<p>An ESOP gives an employee the right, not the obligation, to purchase shares in the company at a predetermined price (exercise price) after completing a specified period of service (vesting period). No shares are issued when the option is granted. No shares are issued when the option vests. Shares are issued only when the employee exercises, when they actually pay the exercise price and the company allots shares.<\/p>\n\n\n\n<p>The lifecycle:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Stage<\/strong><\/td><td><strong>What Happens<\/strong><\/td><td><strong>Shares Issued?<\/strong><\/td><td><strong>Tax?<\/strong><\/td><\/tr><tr><td>Grant<\/td><td>Company offers the option<\/td><td>No<\/td><td>No<\/td><\/tr><tr><td>Vesting<\/td><td>Employee earns the right to exercise<\/td><td>No<\/td><td>No<\/td><\/tr><tr><td>Exercise<\/td><td>Employee pays exercise price; company allots shares<\/td><td><strong>Yes<\/strong><\/td><td><strong>Perquisite tax<\/strong><\/td><\/tr><tr><td>Sale<\/td><td>Employee sells the shares<\/td><td>N\/A<\/td><td><strong>Capital gains tax<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>This two-stage tax event is the most misunderstood aspect of ESOPs in India. Employees think they will be taxed only when they sell. They are wrong. They are taxed the moment they exercise, even if they hold illiquid shares in a private company that they cannot sell. More on this shortly.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Legal_Framework_What_You_Actually_Need_to_Do\"><\/span>The Legal Framework, What You Actually Need to Do<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>I will keep this section practical rather than academic. If you are a promoter setting up an ESOP scheme, here is what the law requires:<\/p>\n\n\n\n<p><a href=\"https:\/\/vakilsearch.com\/article\/esop-in-a-private-limited-company\/\">Section 62(1)(b) of the Companies Act, 2013<\/a> is the statutory authority.<a href=\"https:\/\/ca2013.com\/rule-12-companies-share-capital-and-debentures-rules-2014\/\"> Rule 12 of the Companies (Share Capital and Debentures) Rules, 2014<\/a> prescribes the conditions. Together, they govern every ESOP issued by every Indian company, private, public, listed, or unlisted.<\/p>\n\n\n\n<p><strong>Shareholder approval is mandatory.<\/strong> Section 62(1)(b) requires a special resolution (75% majority). There is an MCA exemption for private companies (<a href=\"https:\/\/www.equitylist.co\/blog-post\/esop-policy\">G.S.R. 464(E)<\/a>) allowing an ordinary resolution, but I strongly advise against relying on it. If PE investment is anywhere on your horizon, the investor&#8217;s lawyers will expect a special resolution. Use one from the start and save yourself a re-do later.<\/p>\n\n\n\n<p><strong>The minimum vesting period is one year.<\/strong><a href=\"https:\/\/ca2013.com\/rule-12-companies-share-capital-and-debentures-rules-2014\/\"> Rule 12(6)(a)<\/a> is explicit: there must be a minimum of one year between the grant date and the first vesting date. This is your &#8220;cliff.&#8221; Most companies use a 4-year vesting schedule with a 1-year cliff, 25% vests after year one, the remaining 75% vests monthly or quarterly over the next three years. This is market standard, not a legal requirement. The law only mandates the one-year minimum.<\/p>\n\n\n\n<p><strong>Not everyone can receive ESOPs.<\/strong><a href=\"https:\/\/www.equitylist.co\/blog-post\/esop-companies-act\"> Rule 12<\/a> limits eligibility to permanent employees and directors (excluding independent directors) of the company, and of its subsidiary, holding, or associate companies. Promoters and directors holding more than 10% equity are explicitly excluded. There is a carve-out for DPIIT-recognized startups, both exclusions are waived for ten years from incorporation, but most businesses in the \u20b910 crore to \u20b9200 crore range do not qualify as startups.<\/p>\n\n\n\n<p><strong>Filing is not optional.<\/strong> The resolution approving the scheme must be filed via <a href=\"https:\/\/www.equitylist.co\/blog-post\/esop-scheme-india\">Form MGT-14<\/a> within 30 days. After exercise and allotment, Form PAS-3 must be filed. A register of options must be maintained in <a href=\"https:\/\/www.equitylist.co\/blog-post\/esop-scheme-india\">Form SH-6<\/a>. Annual disclosure in the Board&#8217;s Report is required under Rule 12(9). I have seen companies treat these as back-office formalities and defer them. Then due diligence arrives and the absence of filings becomes a finding that delays the transaction by weeks.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Tax_Reality_And_Why_It_Catches_People_Off_Guard\"><\/span>The Tax Reality, And Why It Catches People Off Guard<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>This is an area where I find even experienced promoters and their CAs sometimes have an incomplete picture. The tax treatment of ESOPs in India creates a cash flow dynamic that is worth understanding clearly.<\/p>\n\n\n\n<p>Under the Income Tax Act, both the <a href=\"https:\/\/www.equitylist.co\/blog-post\/perquisite-tax-esops-india\">old Act of 1961 and the new Act of 2025<\/a> (effective 1 April 2026, with substantive ESOP rules unchanged per <a href=\"https:\/\/taxsocial.pro\/article\/esop-taxation-two-stage-perquisite-capital-gains-income-tax-act-2025\">Tax Social, May 2026<\/a>), ESOPs are taxed at two separate points.<\/p>\n\n\n\n<p><strong>At exercise: perquisite tax.<\/strong><\/p>\n\n\n\n<p>Perquisite = (FMV on exercise date \u2013 Exercise price) \u00d7 Number of options exercised<\/p>\n\n\n\n<p>This is added to the employee&#8217;s salary and taxed at their slab rate. The employer must deduct TDS. For unlisted companies, FMV must be certified by a SEBI-registered Category I Merchant Banker.<\/p>\n\n\n\n<p><strong>At sale: capital gains tax.<\/strong><\/p>\n\n\n\n<p>Capital gain = Sale price \u2013 FMV on exercise date<\/p>\n\n\n\n<p>For unlisted shares: short-term (held less than 24 months) at slab rate; long-term (held more than 24 months) at 12.5% without indexation, per<a href=\"https:\/\/ionic.in\/blogs\/esop-taxation-india-exercise-capital-gains-guide\"> Ionic (July 2026)<\/a>.<\/p>\n\n\n\n<p><strong>Let me show you why this matters with real numbers.<\/strong><\/p>\n\n\n\n<p>Your CFO is granted 10,000 options at \u20b9100 per share. Three years later, she exercises when the Merchant Banker certifies FMV at \u20b9500. Two years after that, she sells at \u20b9800.<\/p>\n\n\n\n<p><strong>At exercise:<\/strong><\/p>\n\n\n\n<p>She pays \u20b910 lakh (exercise price). The perquisite is \u20b9400 \u00d7 10,000 = \u20b940 lakh. Her employer deducts TDS of roughly \u20b912 lakh (at the 30% slab). She has now spent \u20b922 lakh in cash, and she holds shares in a private company that she cannot sell on any exchange. There is no liquidity event. She has paper wealth and a real tax bill.<\/p>\n\n\n\n<p>This is the exercise-stage trap that<a href=\"https:\/\/taxsocial.pro\/article\/esop-taxation-two-stage-perquisite-capital-gains-income-tax-act-2025\"> TaxSocial<\/a> correctly identifies as the biggest pain point for ESOP holders in unlisted companies. I have seen situations where employees were genuinely taken aback, not by the tax itself, but by the fact that it was not explained to them before they made the decision to exercise.<\/p>\n\n\n\n<p><strong>At sale (two years later, \u20b9800 per share):<\/strong><\/p>\n\n\n\n<p>Capital gain: \u20b9300 \u00d7 10,000 = \u20b930 lakh. Tax at 12.5% LTCG: \u20b93.75 lakh. Now she is finally liquid, and the tax is manageable.<\/p>\n\n\n\n<p><strong>Total tax across both stages: roughly \u20b915.75 lakh on a total gain of \u20b970 lakh. Effective rate: about 22.5%.<\/strong><\/p>\n\n\n\n<p>The economics work out well in the end. The problem is the <em>timing<\/em>, the heavy tax hit at exercise, years before any liquidity. If you are a promoter designing an ESOP scheme, you owe it to your employees to explain this clearly. Better still, consider structuring exercise windows close to expected liquidity events (fundraise rounds, buybacks, or exits) so that employees are not stuck with a tax bill and no way to fund it.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Dilution_Maths\"><\/span>The Dilution Maths<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>This is arguably the most important section of this article for a business owner, because this is where ownership economics are determined.<\/p>\n\n\n\n<p>When options are exercised, new shares are issued. Total shares outstanding increase. Every existing shareholder&#8217;s percentage ownership goes down. That is dilution.<\/p>\n\n\n\n<p><strong>Standalone dilution, simple case:<\/strong><\/p>\n\n\n\n<p>You own 100% of a company with 10 lakh shares. You create a 10% ESOP pool (1 lakh options). When all are exercised, total shares become 11 lakh. Your ownership: 90.9%. You have transferred 9.1% of the company&#8217;s economic value to employees. On a \u20b9100 crore company, that is \u20b99.1 crore.<\/p>\n\n\n\n<p>That is straightforward. Now here is where it stops being straightforward.<\/p>\n\n\n\n<p><strong>The PE fundraise scenario, where most promoters get hurt.<\/strong><\/p>\n\n\n\n<p>A PE investor offers \u20b925 crore at a pre-money valuation of \u20b975 crore. The term sheet requires a 10% ESOP pool to be created <em>before<\/em> the investment closes. Here is what happens to your cap table:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Step<\/strong><\/td><td><strong>Promoter<\/strong><\/td><td><strong>ESOP Pool<\/strong><\/td><td><strong>Investor<\/strong><\/td><td><strong>Total<\/strong><\/td><\/tr><tr><td>Starting position<\/td><td>100%<\/td><td>\u2014<\/td><td>\u2014<\/td><td>100%<\/td><\/tr><tr><td>After creating 10% ESOP pool<\/td><td>90%<\/td><td>10%<\/td><td>\u2014<\/td><td>100%<\/td><\/tr><tr><td>After \u20b925 Cr investment (post-money \u20b9100 Cr)<\/td><td><strong>67.5%<\/strong><\/td><td>7.5%<\/td><td>25%<\/td><td>100%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>You started at 100%. You now hold 67.5%. The investor holds 25%. The ESOP pool holds 7.5%.<\/p>\n\n\n\n<p>If the pool had been created <em>after<\/em> the investment instead of before, the dilution would have been shared between you and the investor, and your stake would have been approximately 72.5%.<\/p>\n\n\n\n<p><strong>That 5 percentage point difference is \u20b95 crore on a \u20b9100 crore company.<\/strong><\/p>\n\n\n\n<p>As<a href=\"https:\/\/lgassociates.org\/how-esops-impact-company-financials-and-shareholding-structure-in-india\/\"> LG Associates (September 2025)<\/a> and<a href=\"https:\/\/www.mnclgroup.com\/esop-impact-dilution-india\"> MNCL Group<\/a> confirm, investors almost always insist on pre-investment pool creation. It is standard practice. But &#8220;standard practice&#8221; does not mean you have no room to negotiate.<\/p>\n\n\n\n<p>What I would recommend to any promoter in this situation: size the pool based on your <em>actual<\/em> hiring needs for the next 3 to 4 years, not the investor&#8217;s default template. If a careful bottom-up analysis suggests you need 7% to attract and retain the people your growth plan requires, that is the number to negotiate around, not an arbitrary 15% simply because it appeared in the term sheet.<\/p>\n\n\n\n<p>A useful approach is to work with the investor to build the pool from a specific hiring plan: how many key hires, at what seniority levels, with what equity expectations. When the pool size is grounded in a concrete plan, both sides can align on a number that makes sense for the business rather than defaulting to convention.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Happens_to_ESOPs_When_You_Sell_the_Company\"><\/span>What Happens to ESOPs When You Sell the Company<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>This is something I care about deeply, because I have seen it handled badly more times than it should be.<\/p>\n\n\n\n<p><strong>A recent transaction we advised on illustrates this perfectly.<\/strong><\/p>\n\n\n\n<p>We were working on the acquisition of a specialised services company. The deal was valued at \u20b9128 crore based on the business&#8217;s fundamentals, market position, and earnings. However, the final transaction was structured at \u20b9115 crore, with the remaining value, approximately \u20b913 crore, allocated as an ESOP pool for the company&#8217;s employees.<\/p>\n\n\n\n<p>I know what you are thinking. Why would a promoter walk away from \u20b913 crore?<\/p>\n\n\n\n<p>Because the alternative was worse. The business depended on a highly skilled technical team whose continued employment was critical to the buyer&#8217;s post-acquisition plans. Without a retention mechanism, the buyer&#8217;s biggest fear was that key people would leave within 12 to 18 months, taking the operational capability, the very thing they were paying \u20b9128 crore for, with them.<\/p>\n\n\n\n<p>The ESOP pool solved three problems at once. The buyer got confidence that the team would stay. The employees got meaningful wealth, \u20b913 crore distributed across key team members is genuinely life-changing. And the promoter got a clean, certain close at \u20b9115 crore instead of a conditional deal with holdbacks, escrows, and earn-out mechanisms that might have delivered a similar net amount over three years with far more complexity and risk.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Component<\/strong><\/td><td><strong>Amount<\/strong><\/td><\/tr><tr><td>Business valuation<\/td><td>\u20b9128 crore<\/td><\/tr><tr><td>Transaction price to promoter<\/td><td>\u20b9115 crore<\/td><\/tr><tr><td>ESOP pool for employees<\/td><td>~\u20b913 crore<\/td><\/tr><tr><td>Promoter&#8217;s realisation<\/td><td>89.8% of full value, clean, at close<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>The ESOP was not a concession. It was a deal architecture decision. And in my view, it was the right one.<\/p>\n\n\n\n<p><strong>The broader point for any promoter considering an exit:<\/strong> your ESOP scheme document should contain clear provisions for what happens on a change of control. The common options are acceleration (all options vest immediately and are included in the sale), assumption (the buyer replaces your options with equivalent options in their company), cash settlement (options are cancelled and holders get a cash payout), or lapse (unvested options simply expire).<\/p>\n\n\n\n<p>If the scheme document is silent on this, the default is typically that unvested options lapse, which can create uncertainty for employees, concern for buyers around retention, and additional complexity during the SPA negotiation.<\/p>\n\n\n\n<p>The most effective approach is to address this in the scheme document well in advance of any transaction, when there is time to think it through carefully rather than resolve it under deal pressure.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_ESOPs_Appear_in_Your_Financial_Statements\"><\/span>How ESOPs Appear in Your Financial Statements<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>This is an area that sometimes surfaces unexpectedly during a fundraise or acquisition process.<\/p>\n\n\n\n<p>Under<a href=\"https:\/\/www.qapita.com\/in\/blog\/impact-of-esops-on-financial-statements\"> Ind AS 102 (Share-Based Payment)<\/a>, your company must recognise the fair value of ESOPs as an expense in the P&amp;L, spread over the vesting period. This is a non-cash expense, no money actually leaves the company, but it reduces your reported EBITDA and net profit.<\/p>\n\n\n\n<p>The relevance during a transaction is straightforward: when a PE firm or a buyer evaluates your EBITDA, the ESOP expense is part of the reported number. Whether it is treated as a recurring expense (which compresses your EBITDA and, consequently, your valuation) or as a non-cash add-back (which improves it) depends on whether the buyer intends to continue the scheme post-acquisition.<\/p>\n\n\n\n<p>It is worth having a clear understanding of what your ESOP expense is, how it flows through your financials, and what the reasonable treatment should be in a normalised EBITDA discussion. Being prepared with this analysis ensures that the conversation during diligence is informed and balanced.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Corporate_Laws_Amendment_Bill_2026_What_May_Be_Coming\"><\/span>The Corporate Laws Amendment Bill, 2026, What May Be Coming<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The<a href=\"https:\/\/www.corporateprofessionals.com\/articles\/revisiting-the-esop-framework-under-section-621b-a-critical-analysis-of-the-corporate-laws-amendment-bill-2026\/\"> Corporate Laws (Amendment) Bill, 2026 (Bill No. 85 of 2026)<\/a>, introduced in the Lok Sabha on 23 March 2026, proposes changes to Section 62(1)(b). As Corporate Professionals&#8217; analysis (May 2026) documents, the proposed amendment seeks to expand the scope beyond traditional ESOPs to include &#8220;other schemes linked to share value&#8221;, potentially accommodating Employee Stock Purchase Schemes (ESPS) and other share-based benefits currently recognized only under SEBI regulations.<\/p>\n\n\n\n<p>In a significant development, the <a href=\"https:\/\/www.business-standard.com\/companies\/news\/corporate-laws-amendment-bill-2026-what-changes-for-india-inc-investors-126080400788_1.html\">Joint Parliamentary Committee (JPC) submitted its report in Parliament on 4 August 2026<\/a>, backing the proposed legislation. As <a href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/corporate-laws-amendment-bill-2026-companies-act-llp-reforms\/\">Legal Service India (August 5, 2026)<\/a> confirmed, the Bill remains under review and has not yet been passed into law, but the JPC endorsement means passage is now closer than at any point since the Bill was introduced.<\/p>\n\n\n\n<p>For companies designing ESOP schemes today, the practical approach is to structure under the current framework while maintaining flexibility for the broader share-based benefit provisions the amendment may introduce.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Experienced_Advisors_Typically_Recommend\"><\/span>What Experienced Advisors Typically Recommend<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If you have read this far, you are probably in one of three situations: you are thinking about creating an ESOP scheme, you are entering a PE fundraise where the investor wants one, or you are planning an exit and need to figure out what happens to the options you have already granted.<\/p>\n\n\n\n<p>Regardless of which situation you are in, here is what I would tell you:<\/p>\n\n\n\n<p><strong>Do not treat ESOPs as free.<\/strong> They are not. Every option you grant is a share of your company that will belong to someone else. The cost is dilution, and dilution is permanent.<\/p>\n\n\n\n<p><strong>Size the pool based on reality, not convention.<\/strong> Calculate exactly how many key hires you need to make over the next 3 to 4 years, what seniority levels they will be at, and what equity allocation is reasonable for each level. Build the pool from that bottom-up analysis. Do not accept an investor&#8217;s top-down &#8220;give us 10 to 15 percent&#8221; without doing this work.<\/p>\n\n\n\n<p><strong>Get the legal foundation right from day one.<\/strong> Formal scheme. Shareholder approval. RoC filing. Register. Annual disclosure. I cannot stress this enough, informal promises are worthless at best and liabilities at worst.<\/p>\n\n\n\n<p><strong>Explain the tax to your employees before they exercise.<\/strong> The perquisite tax at exercise is real, immediate, and often larger than employees expect. If you surprise them with a \u20b910 to \u20b915 lakh tax bill on illiquid shares, you have turned a retention tool into a grievance.<\/p>\n\n\n\n<p><strong>Build change-of-control provisions into the scheme.<\/strong> What happens to vested and unvested options if the company is acquired? Spell it out. If you do not, you will be solving it under pressure during a live deal, and the cost, in time, in legal fees, and in employee anxiety, will be significant.<\/p>\n\n\n\n<p><strong>Know what your ESOP expense does to your EBITDA.<\/strong> If you are heading into a fundraise or a sale, the Ind AS 102 expense is in your P&amp;L. Know the number. Have a view on whether it should be treated as recurring or as a non-cash add-back. Do not let the buyer&#8217;s advisor frame it for you.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"A_Quick_Self-Assessment\"><\/span>A Quick Self-Assessment<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>#<\/strong><\/td><td><strong>Question<\/strong><\/td><td><strong>Yes\/No<\/strong><\/td><\/tr><tr><td>1<\/td><td>Has your ESOP scheme been formally approved by shareholders and filed via MGT-14?<\/td><td><\/td><\/tr><tr><td>2<\/td><td>Do you maintain a register of stock options in Form SH-6?<\/td><td><\/td><\/tr><tr><td>3<\/td><td>Can you state your total dilution if all outstanding options are exercised?<\/td><td><\/td><\/tr><tr><td>4<\/td><td>Does your scheme contain clear change-of-control provisions?<\/td><td><\/td><\/tr><tr><td>5<\/td><td>Have you modelled your post-ESOP, post-investment ownership?<\/td><td><\/td><\/tr><tr><td>6<\/td><td>Do your employees understand the perquisite tax at exercise?<\/td><td><\/td><\/tr><tr><td>7<\/td><td>Has FMV been certified by a SEBI-registered Merchant Banker?<\/td><td><\/td><\/tr><tr><td>8<\/td><td>Is ESOP expense properly recognised in your P&amp;L under Ind AS 102?<\/td><td><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>If you answered &#8220;no&#8221; to more than two, your ESOP structure needs professional review before any transaction.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_IBGrid_Supports_This_Process\"><\/span>How IBGrid Supports This Process<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>ESOPs come up in virtually every mid-market transaction we advise on. A PE fundraise where the pool is a term sheet negotiation. An acquisition where outstanding options must be addressed. A valuation where ESOP expense affects EBITDA.<\/p>\n\n\n\n<p>We help promoters model dilution, negotiate pool size and timing, structure schemes that are transaction-ready from inception, and address ESOP-related findings during due diligence.<\/p>\n\n\n\n<p>For a confidential discussion, our team can be reached<a href=\"https:\/\/www.ibgrid.com\/business-fundraising-services\"> here<\/a>. For a preliminary valuation, use our free<a href=\"https:\/\/www.ibgrid.com\/business-valuation-calculator\"> Valuation Calculator<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions\"><\/span>Frequently Asked Questions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Can_a_private_limited_company_issue_ESOPs_in_India\"><\/span>Can a private limited company issue ESOPs in India?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Yes. <a href=\"https:\/\/www.equitylist.co\/blog-post\/esop-companies-act\">Section 62(1)(b) of the Companies Act, 2013<\/a> authorizes any company with share capital to issue shares to employees under an ESOP scheme. The scheme must be approved by shareholders and filed with the RoC. SEBI regulations apply only to listed companies, unlisted private companies follow the Companies Act and Rule 12 framework.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_minimum_vesting_period_for_ESOPs_in_India\"><\/span>What is the minimum vesting period for ESOPs in India?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>One year. <a href=\"https:\/\/ca2013.com\/rule-12-companies-share-capital-and-debentures-rules-2014\/\">Rule 12(6)(a)<\/a> mandates a minimum of one year between the grant date and the first vesting date. This is the statutory &#8220;cliff.&#8221; Most companies use a 4-year vesting schedule with a 1-year cliff, though the law only prescribes the one-year minimum.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Are_promoters_eligible_for_ESOPs\"><\/span>Are promoters eligible for ESOPs?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Generally, no. <a href=\"https:\/\/www.equitylist.co\/blog-post\/section-62-companies-act\">Rule 12<\/a> excludes promoters, members of the promoter group, and directors holding more than 10% of outstanding equity shares. There is an exception for DPIIT-recognized startups, where both exclusions are waived for ten years from the date of incorporation.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"When_are_ESOPs_taxed\"><\/span>When are ESOPs taxed?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>ESOPs are taxed at two separate stages. At exercise, the difference between the Fair Market Value and the exercise price is treated as a perquisite and taxed as salary income at the employee&#8217;s slab rate. At sale, any gain over the FMV on the exercise date is treated as capital gains, short-term (slab rate) if held less than 24 months, or long-term (12.5%) if held more than 24 months, for unlisted shares.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Has_ESOP_taxation_changed_under_the_Income_Tax_Act_2025\"><\/span>Has ESOP taxation changed under the Income Tax Act, 2025?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The <a href=\"https:\/\/www.equitylist.co\/blog-post\/perquisite-tax-esops-india\">Income Tax Act, 2025<\/a> (effective 1 April 2026) renumbers the relevant provisions but does not change the substantive rules. The two-stage taxation (perquisite at exercise, capital gains at sale), the FMV formula, and the TDS obligation all remain the same. Companies should update section references in their scheme documents and grant letters.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_happens_to_ESOPs_when_a_company_is_acquired\"><\/span>What happens to ESOPs when a company is acquired?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>This depends on the ESOP scheme document and the terms negotiated in the transaction. Common treatments include acceleration (all options vest immediately and are included in the sale), assumption (the buyer replaces the options with equivalent options in their company), cash settlement (options are cancelled and holders receive a cash payment), or lapse (unvested options expire). If the scheme is silent on change of control, unvested options typically lapse by default.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_does_an_ESOP_pool_affect_my_valuation_during_a_PE_fundraise\"><\/span>How does an ESOP pool affect my valuation during a PE fundraise?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>PE investors typically require an ESOP pool to be created before their investment, meaning the dilution comes from the promoter&#8217;s stake, not the investor&#8217;s. A 10% pool created pre-investment on a \u20b9100 crore post-money company transfers \u20b910 crore of economic value from the promoter to the pool. The size of the pool should be negotiated based on actual hiring needs, not investor convention.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Does_the_ESOP_expense_affect_my_EBITDA\"><\/span>Does the ESOP expense affect my EBITDA?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Yes. Under<a href=\"https:\/\/www.qapita.com\/in\/blog\/impact-of-esops-on-financial-statements\"> Ind AS 102<\/a>, the fair value of ESOPs must be recognized as an expense in the P&amp;L, spread over the vesting period. This non-cash expense reduces reported EBITDA. During a transaction, whether this expense is treated as recurring or as a non-cash add-back depends on the buyer&#8217;s assessment of whether they will continue the scheme.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_filings_are_required_for_an_ESOP_scheme\"><\/span>What filings are required for an ESOP scheme?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The shareholder resolution must be filed via <a href=\"https:\/\/www.equitylist.co\/blog-post\/esop-scheme-india\">Form MGT-14<\/a> within 30 days. After exercise and allotment, Form PAS-3 must be filed. A register of options must be maintained in Form SH-6. Annual disclosure in the Board&#8217;s Report is required under Rule 12(9). Non-compliance with any of these can be flagged during due diligence.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_difference_between_ESOPs_and_sweat_equity_shares\"><\/span>What is the difference between ESOPs and sweat equity shares?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>ESOPs give employees the right to purchase shares at a future date at a predetermined price. Sweat equity shares are issued at a discount or for non-cash consideration (such as IP or know-how) under <a href=\"https:\/\/www.equitylist.co\/blog-post\/section-62-companies-act\">Section 54 of the Companies Act, 2013<\/a>. They have different legal frameworks, different tax treatments, and different eligibility criteria. The choice between them depends on the purpose and the nature of the employee&#8217;s contribution.<\/p>\n\n\n\n<div class=\"wp-block-group alignfull has-text-color has-background\" style=\"color:#000000;background-color:#ffffff\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<p class=\"has-text-align-center has-small-font-size\" style=\"line-height:.9\"><strong>GET IN TOUCH<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading has-text-align-center\" id=\"schedule-a-visit\" style=\"font-size:59px;line-height:1.15\"><span class=\"ez-toc-section\" id=\"Lets_Discuss\"><\/span><strong>Let&#8217;s Discuss<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-buttons is-horizontal is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-499968f5 wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button has-custom-width wp-block-button__width-50\"><a class=\"wp-block-button__link has-text-color has-background wp-element-button\" href=\"https:\/\/www.ibgrid.com\/investmentbanking\" style=\"border-radius:50px;color:#ffffff;background-color:#10ffd7\">Contact us<\/a><\/div>\n<\/div>\n<\/div><\/div>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Who this guide is for: Indian business owners and promoters with \u20b910 crore to \u20b9200 crore annual turnover who are considering ESOPs, whether to retain [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":541,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"cybocfi_hide_featured_image":"","footnotes":""},"categories":[24],"tags":[107,106,109,110,105,108,102,103],"class_list":["post-539","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-esops","tag-business-esops-guide","tag-can-promoter-get-esop-in-private-company-india","tag-employee-stock-ownership-plan-for-businesses-in-india","tag-esop-change-of-control-clause-in-ma-deal","tag-esop-scheme-approval-filing-mgt-14-pas-3-india-2","tag-esops-guide-for-indian-owners","tag-how-esop-pool-affects-promoter-ownership-in-fundraise","tag-what-happens-to-esop-when-company-is-acquired-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>ESOPs in India: What Business Owners Get Wrong | IBGrid<\/title>\n<meta name=\"description\" content=\"Practical guide to ESOPs for Indian business owners; 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