Delhivery, one of India’s leading logistics companies, has made a significant move to expand its Employee Stock Option Plan (ESOP) with the recent allotment of 4.90 lakh stock options. This decision, approved by the company’s board, is part of its ongoing efforts to align the interests of its employees with the growth and success of the company.
According to a filing with the stock exchanges, the 4.90 lakh stock options have been granted under the Delhivery ESOP 2012 scheme. These stock options are convertible into fully paid-up equity shares, each with a face value of INR 1. The new allotment underscores the company’s commitment to rewarding its employees and incentivizing long-term growth, especially as Delhivery continues to scale up its operations across the country.
One of the key features of this latest allotment is the structured vesting schedule attached to the stock options. The company has outlined a gradual vesting timeline for the newly granted stock options. Of the total 4.90 lakh stock options, 20% will vest after 12 months from the date of allotment, while 30% will vest after 24 months, and the remaining 50% will vest after 36 months. This phased vesting schedule is designed to retain and motivate employees over the long run, ensuring that they remain aligned with the company’s strategic goals and objectives.
This fresh ESOP allotment comes just a few weeks after Delhivery had allotted 11.2 lakh equity shares under various ESOP schemes on November 9, 2024. Additionally, earlier in the same month, the company granted 73,300 stock options. The multiple rounds of stock options and equity grants reflect Delhivery’s broader strategy of attracting and retaining top talent in the competitive logistics and tech space. By offering employees the chance to own a piece of the company, Delhivery is fostering a sense of ownership and motivating its workforce to contribute to the company’s long-term success.
The expansion of the ESOP pool is also indicative of Delhivery’s growth trajectory. As one of India’s largest and most successful logistics firms, Delhivery has been scaling its operations significantly over the past few years. The company has consistently made strategic investments in technology and infrastructure to support its business, and the move to expand its ESOP pool is aligned with these objectives. By tying compensation to stock options, Delhivery is not only incentivizing its employees but also enhancing its position in the market as a desirable employer.
ESOPs are widely regarded as an effective tool for boosting employee engagement and loyalty. As employees become stakeholders in the company’s success, they are more likely to be motivated to work towards the company’s long-term growth. In a competitive market, offering stock options gives companies like Delhivery an edge in attracting skilled professionals who are looking for more than just a salary – they are looking for the opportunity to share in the rewards of the company’s success.
For Delhivery, which has already made significant strides in revolutionizing logistics in India, the expansion of its ESOP pool signifies its ambition to grow further and build a culture of ownership. It is also a reflection of the company’s focus on creating long-term value for both its employees and shareholders.
As Delhivery continues to innovate and scale its business, its ESOP strategy will likely play a key role in retaining talent, driving performance, and ensuring that the company remains competitive in an ever-evolving industry.
