Grasim Industries Limited has recently announced the grant of 2,668 stock options to its employees, as per a resolution passed by the Nomination and Remuneration Committee on November 5, 2025. The allocation comprises 2,407 stock options and 261 Performance Stock Units (PSUs), all part of the Employee Stock Option and Performance Stock Unit Scheme 2022. This scheme is designed to enhance employee engagement and retention, implemented through the Grasim Employees’ Welfare Trust, and aims to align employee interests with company performance.

The vesting schedule for these options is structured such that 33% of the options will vest over a period of three years, with the first portion becoming available after one year. In contrast, the PSUs will fully vest at the end of three years from the grant date. Employees will have a five-year exercise window post-vesting to capitalize on their options, which are priced at Rs. 2,882 per option based on the market price as of November 4, 2025. The PSUs are priced significantly lower at Rs. 2 per unit, making them an attractive incentive for employees.

Importantly, the vesting of both stock options and PSUs is contingent upon performance conditions, which underscores Grasim's commitment to rewarding employees based on their contributions to the company's success. This strategic move not only aims to bolster employee morale but also serves to align their interests with shareholder value, reinforcing the company's long-term growth trajectory. As Grasim continues to enhance its corporate governance and employee engagement strategies, this stock option grant is a noteworthy step in fostering a motivated workforce.