Grant of 8,679 stock options and 27,140 ESARs announced under two employee schemes
Cipla has granted 8,679 stock options under ESOS 2013-A (exercise price INR 2 per option, vesting over 2 years) and 27,140 ESARs under ESAR 2021 (exercise price INR 2 per equity share, 3 years graded vesting).
By ScoutQuest · · 2 min read
- Stock options granted (ESOS 2013-A)
- 8,679 stock options, exercise price INR 2 per option, vesting over 2 years
- ESARs granted (ESAR 2021)
- 27,140 ESARs, exercise price INR 2 per equity share, 3 years graded vesting
- Exercise window
- 5 years from vesting
What was announced
- 8,679 stock options granted under the Employee Stock Option Scheme 2013-A (ESOS 2013-A), with an exercise price of INR 2 per stock option.
- 27,140 Employee Stock Appreciation Rights (ESARs) granted under the Cipla Employee Stock Appreciation Rights Scheme 2021 (ESAR 2021), with an exercise price of INR 2 per equity share.
Vesting and exercise terms
- ESOS 2013-A options vest over 2 years from the grant date.
- ESAR 2021 rights carry 3 years graded vesting.
- For both instruments, the exercise period is 5 years from the vesting date.
The Board meeting held the same day commenced at 10:00 a.m. (IST) and concluded at 01:30 p.m. (IST).
What these instruments mean
A stock option is a right given to an employee to buy a company share at a pre-fixed price, here INR 2 per stock option, once the waiting period is over. An ESAR is a right linked to the equity share, carrying an exercise price of INR 2 per equity share as stated in the update.
Vesting is the waiting period an employee must complete before the right can be used. The exercise period is the window after vesting within which the right can be exercised. In the ESAR scheme, vesting happens in stages over 3 years (graded vesting), rather than all at once.
Why companies do this
Such grants are part of employee compensation and are meant to link a portion of employee reward to the company's equity. They are typically granted to eligible employees as decided under the respective schemes.
What it means for the share count
When options or ESARs are eventually exercised, shares can be issued by the company. That can add to the total number of shares over time. The size of this particular grant is 8,679 options and 27,140 ESARs, so the addition to the share count, when it happens, is spread over the vesting and exercise timelines mentioned above.
How to read this announcement
- It is a disclosure of employee incentive grants under schemes already in place.
- It does not relate to the company's operations, sales, earnings or any corporate action such as dividend, split or buyback.
- The relevant numbers to track are the grant size (8,679 and 27,140), the exercise price (INR 2 in both cases) and the time frame (2 years and 3 years vesting, 5 years exercise period from vesting).
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27 Oct 2026
Cipla's Q2 results were largely in line with estimates, with a dip in profit and muted US sales due to supply issues
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More numbers
- Stock options granted under ESOS 2013-A8,679
- ESARs granted under ESAR 202127,140
- Exercise price per stock optionINR 2
- Exercise price per equity share (ESAR)INR 2
- Vesting period for ESOS 2013-A options2 years
- Graded vesting period for ESARs3 years
- Exercise period from vesting date5 years
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