The Board of Directors of Aditya Birla Fashion and Retail Limited has approved the introduction and adoption of the ABFRL ESOP Scheme 2026. This scheme, aligned with SEBI regulations, aims to incentivize employees by offering stock options. The approval is subject to shareholder consent. The scheme allows for the grant of up to 3,12,95,000 equity shares, representing approximately 2.5% of the company’s paid-up equity share capital on a fully diluted basis.
Board Approves Employee Stock Option Scheme
Aditya Birla Fashion and Retail Limited announced today, August 8, 2026, that its Board of Directors has approved the introduction and adoption of the “ABFRL ESOP Scheme 2026”. This decision, made upon the recommendation of the Nomination and Remuneration Committee, aligns with the provisions of the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021.
The scheme is intended to provide eligible employees with stock options, thereby fostering alignment with the company’s long-term growth and value creation. The approval of this scheme is a significant step, though it is now subject to the approval of the company’s shareholders.
Key Scheme Details
Options Grant and Share Allotment
Under the “ABFRL ESOP Scheme 2026,” the company proposes to grant stock options exercisable into a maximum of 3,12,95,000 equity shares. This quantity represents approximately 2.5% of the company’s paid-up equity share capital, calculated on a fully diluted basis, and can be granted in one or more tranches.
Eligibility and Vesting
The scheme mandates a minimum period of one year between the grant of options and their vesting. Once vested, options entitle the holder to acquire an equivalent number of equity shares upon payment of the exercise price and applicable taxes, as per the scheme’s terms and conditions.
Exercise Price and Administration
The exercise price for these options will not be less than the face value of the company’s shares and will not exceed the prevailing fair market value on the grant date, or as decided by the Nomination and Remuneration Committee (NRC). The NRC will also administer the scheme, functioning as the Compensation Committee. The implementation of the scheme will involve the issuance of new equity shares by the company.
Timeline and Governance
The meeting of the Board of Directors commenced at 1:00 p.m. and concluded at 2:55 p.m. on August 8, 2026. The approved details of the ESOP Scheme 2026 are further elaborated in Annexure A, which provides comprehensive information regarding the options granted, their terms, and conditions.
The information regarding this board approval will be made available on the company’s website, www.abfrl.com.
Source: BSE
