NRC approves grant of 6,50,056 and 24,960 stock options under Employee Benefit Scheme – 2022
Jindal Steel's Nomination and Remuneration Committee approved two stock option grants on October 23, 2026.
By ScoutQuest · · 2 min read
- Grant-I options
- ~6.5 lakh options, vesting across 5 years in tranches of 20% each
- Grant-II options
- 24,960 options, 100% one-time vesting a year after the grant
- Exercise price formula
- Face Value + 50% of Market Price
Two grants approved in one meeting
Jindal Steel's Nomination and Remuneration Committee met on Friday, October 23, 2026, from 9:30 a.m. to 10:30 a.m. (IST) and approved the grant of stock options to eligible employees of the company and its subsidiary company(ies) under the Jindal Steel Employee Benefit Scheme – 2022. Two separate grants were approved, referred to as Grant-I and Grant-II.
Grant-I in numbers
- ~6.5 lakh options granted, covering ~6.5 lakh equity shares
- Each option converts into one equity share of face value Re. 1/-
- Vesting of the grant spread across 5 years in tranches of 20% each
- Options vest after a minimum vesting period of 1 year
- Exercise window: maximum 5 years from the date of vesting
Grant-II in numbers
- 24,960 options granted, covering 24,960 equity shares
- Each option converts into one equity share of face value Re. 1/-
- 100% one-time vesting a year after the grant
- Options vest after a minimum vesting period of 1 year
- Exercise window: maximum 5 years from the date of vesting
How the exercise price is set
Both grants follow the same pricing formula, Face Value + 50% of Market Price. The shares issued on exercise would be new equity shares of the company, subject to adjustments for corporate actions as mentioned in the scheme.
What happens to the shares
Shares arising on exercise of the options are freely transferable and not subject to any lock-in, except as may be prescribed under applicable laws. The scheme is administered by the Nomination and Remuneration Committee and is stated to be in compliance with the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021.
What a retail shareholder can take away
- Options are a way of paying employees partly in future equity. When they are exercised, new shares are issued, so the total number of shares goes up and every existing share represents a slightly smaller slice of the company.
- Here the size is small in absolute share terms — ~6.5 lakh options in Grant-I and 24,960 options in Grant-II — and the issuance, if and when it happens, is spread over time because vesting starts only after a year and, for Grant-I, runs across 5 years.
- Grant-I is purely time-based in the details shown: 20% of the options vest each year over 5 years. Grant-II vests fully in one go, a year after the grant.
- Employee stock options also carry an accounting cost for the company as employee benefit expense, which is a normal part of such schemes.
- The update is a disclosure of a decision already taken by the committee; the grants have been approved and the key terms — number of options, pricing formula, vesting schedule and exercise window — are set out in the annexure.
What to watch
The relevant markers over the coming years would be how many of these options actually vest and get exercised, and how the company's share count moves as a result.
Also from Jindal Steel
Audio recording of earnings call held on October 23, 2026 uploaded on company website
23 Oct 2026
Jindal Steel Q2FY27: gross revenue INR 19,448 cr, PAT INR 771 cr as coal costs squeeze margins; net debt falls to INR 14,786 cr
23 Oct 2026
Board approves Q2 and H1 FY27 results; auditor's limited review conclusion unmodified
23 Oct 2026
More numbers
- Grant-I options granted6,50,056 options
- Grant-II options granted24,960 options
- Face value per equity shareRe. 1/-
- Pricing formula - share of market price50% of Market Price
- Grant-I vesting tranche size20% each
- Grant-I vesting period5 years
- Exercise window from vestingMaximum 5 years
- Minimum vesting period1 (One) year
Nothing here is a view, opinion or recommendation of ScoutQuest, its parent, directors or employees. ScoutQuest is a technology company: this page was assembled automatically from public sources using artificial intelligence, and may contain errors or omissions. Confirm everything against the original source before you act on it. Any use of this page is at your own risk, and neither ScoutQuest nor its parent, directors or employees accepts liability for it.