Sharescart Research Club logo
AVPL 49 (0%)Bira 175 (-6.9%)Capgemini Technology 11000 (0%)CIAL 460 (1.1%)GFCL EV Product LTD 48 (11.6%)Greenzo Energy Pvt Ltd 635 (0%)HDFC Securities 9500 (2.7%)Honeywell Electrical Devices and Systems 8500 (0%)HPX India 33 (0%)ICEX 3.75 (-5.1%)Incred Holdings 165 (0%)Lords Mark Industries 80 (0%)Motilal Oswal 12.95 (-2.3%)MSEI 2.75 (-6.8%)NSE 1925 (-1.3%)Onix Renewable 72 (-7.7%)Orbis Financial 445 (-4.3%)OYO 28 (0%)OYO Assets 22 (-21.4%)Pharmeasy 6.5 (-6.5%)PolicyX 62 (0%)Polymatech Electronics Pvt Ltd 68 (-5.6%)Royalcare Super Speciality Hospital 142 (1.4%)SBI Mutual Fund 2695 (0%)Signify Innovations 1150 (-2.1%)Sterlite Electric Ltd 495 (-3.9%)

15 Days Price Change

Start Trading Your ESOP Shares
In Minutes

Unlock the true value of your hard-earned equity. With InstaSell, experience safe transactions, quick settlements, and hassle-free Demat transfers — all in one place.

{{ stocks.UL_STOCKS_SLUG }}

{{ stocks.current_price_calculated }} /-

Market Cap

{{ stocks.mcap_calculated | number : 0}}

P/E

{{ stocks.STOCK_PE }}

No Result Found!

Company
Market Cap
( In Cr.)
Current Price
()
P/E Ratio
More Ratio
Action

₹{{stocks.mcap_calculated | number : 0}} cr.

₹{{ stocks.current_price_calculated }}/-

{{ stocks.STOCK_PE }}

More Ratios

No Result Found!

Full Price List

View the complete table of all unlisted shares and their latest prices.

Complete Price list
Deep Share Insights

Get detailed financial metrics and analysis for top unlisted companies.

Fundamental Analysis

Employee Stock Ownership Plan (ESOP)

Employee Stock Ownership Plans (ESOPs) have emerged as one of the most effective ways to both create and retain wealth for employees and owners in the modern business environment. They enable employees to share in the ownership of the organization, in which they play an integral role in building, advancing from a team member to a stakeholder in the organization's success.

suthor
ESOP

What Are ESOPs?

Employee Stock Ownership Plans (ESOPs) are structured plans that provide employees the right to purchase shares of the company at a price determined in advance after a specified period. ESOPs act as a bridge between employee performance and company success — establishing a link based on loyalty to the organisation, contribution to the organisation's success, and alignment with a long-term goal. In short, ESOPs are simply a benefit to employees that allows them to "own" a piece of the company in which they work, capturing some of the benefits of the organisation's growth and increasing valuation.

Why companies elect to use ESOPs:-

  • Attract & retain top talent without an immediate cash outlay
  • Reward employees through equity participation
  • Enhance employee accountability & commitment to the organisation.
  • Align employee interests with overall company performance

How ESOPs Work

Grant

The company issues ESOPs to eligible employees as a part of their compensation package. The issue allows them to have the option (not the obligation) of purchasing stock at a specific future date at a fixed "exercise price."

The Grant Letter will include:

  • Number of options being offered
  • Exercise price per share
  • Vesting schedule (timeline when the options may be exercised)

Vesting

Employees will accumulate a right to exercise the ESOP in stages over time period—this process is known as vesting. Example: If an employee receives an ESOP grant of 1,000 options with a four (4) year vesting schedule, with a vesting of 25% per year, they will be able to exercise 250 shares each year. Vesting serves the dual purpose of retention and rewarding the long-term commitment of the participant. Some plans tie vesting schedules to performance milestones.

Exercise

After the options have vested and the employee can exercise them, the employee is now able to "exercise" the options, meaning that the employee purchases the shares by paying the predetermined exercise price, regardless of the current market price.

Example
Exercise Price ₹100
Market Value ₹300
Gain ₹200 per share

Employees have options to keep the shares or sell, usually depending on a liquidity event such as an IPO (Initial Public Offering), buyback, or secondary share sale.

Sale

After the employee has exercised their options, if the employee has received shares, they may sell their shares as well. The employee sells the shares in one of two ways: either on the open market (for listed companies) or to an investor (or the company) (for non-listed companies). The profit made from the sale is treated as a capital gain for tax purposes. Sharescart eases this process by linking you to vetted buyers, taking care of the paperwork, and facilitating a fast, safe, and no-fuss transaction. Get immediate liquidity while maximising the value of your ESOPs.

Categories of ESOPs in India

Publicly Traded Companies

Employees will easily be able to sell their ESOP shares on the open market after their exercise; with a publicly available share price, the valuation of the shares will be easy to establish, and liquidity guarantees effective exit strategies.

Privately Owned Companies

Liquidity may be limited. Employees will only be able to sell shares in the ESOP during a company-led buyback or through a secondary sale process. A valuation will have been conducted by a merchant banker who is registered with SEBI and follows regulations for these valuations.

Start-ups (DPIIT-Recognized)

Start-ups frequently utilize ESOPs to reward early employees for their substantial risk and to preserve cash in the early days. Tax deferrals are provided to start-ups under the government law

ESOP

Value of ESOPs

For Employees:

  • Wealth generation through the increased valuation of the company.
  • Sense of ownership and alignment with company vision
  • Future financial gain derived from share appreciation in value

For Employers:

  • Retain and motivate high-performing employees
  • Align the workforce with the company vision
  • Non-cash incentives improve the cash intake and out-take efficiency.
suthor

Why Sell ESOP Shares?

Employee Stock Ownership Plans (ESOPs) can be an excellent means of participating in a company's growth. However, there are a few reasons an employee may decide to sell (the ESOP shares have to be converted to shares before a sale occurs)

Immediate Liquidity Needs

In some instances, a shareholder needs liquidity for personal consumption or other immediate financial needs. If a shareholder sells some ESOP shares, this is an easy way to get cash.

Profit Booking

If the current market price of the shares has reached a price level that the shareholder believes is the best sale price, selling will lock in the profit.

Tax Benefit

Sometimes, the tax burden associated with the gain from the ESOP shares can be material. Employees may decide to sell if the balance after taxes provides sufficient profit to meet their financial needs or goals.

Important Note

You cannot directly sell ESOPs. The ESOP must first be exercised (the vesting period is typically 3-4 years) to convert options into shares. It is only after you have exercised the ESOP that a sale becomes possible, based on your personal financial goals. Strategically selling ESOP shares will allow the employee/stockholder to realise gains, satisfy financial goals, and manage portfolio risk.

Get Started Today

Reduction of Portfolio Risk

Selling a portion of ESOP shares can provide liquidity to reduce concentration (e.g., by reinvesting in other companies). When it comes time to consider future investment, a balanced and diversified investment portfolio is essential.

ESOP

Tax Levied on ESOPs in India

The taxation of ESOPs occurs twice: at the time of exercise and at the time of sale.

Stage 1: At the Time of Exercise

Upon exercising the options, employees' taxable income is the difference between the Fair Market Value (FMV) and the exercise price. This amount is considered a perquisite income that is, the income is added to the salary.

Taxable Value = (FMV – Exercise Price) × Number of Shares

The employer will deduct the TDS on the entire amount as per the slab rates applicable.

Example:
  • FMV = ₹200
  • Exercise Price = ₹100
  • Taxable perquisite = ₹100 per share.
  • Taxed as salary income based on your slab rate.

Stage 2: At the Time of Sale (capital gains tax)

The difference between the sale price and the fair market value (at the time of exercise) is taxed as capital gains.

Type of Company Holding Period Type of Gain Tax Rate
Listed > 12 months Long-Term 10% (u/s 112A) on gains > ₹1L
Listed ≤ 12 months Short-Term 15% (u/s 111A)
Unlisted > 24 months Long-Term 20% with indexation
Unlisted ≤ 24 months Short-Term As per income tax slab

ESOP Accounting and Valuation

For compliance purposes, companies are required to identify the fair value of options on the date of grant with an appropriate valuation model, such as the Black-Scholes model. 

  • Fair value would be expensed in the profit & loss account over the vesting period.
  • For unlisted companies, the fair value must be assessed by a Category-I Merchant banker.

This assures both accounting in the record and compliance for tax purposes.

Key Risks and Considerations

  • Liquidity Risk – Unlisted shares may not have a buyer immediately.
  • Tax Burden – Dual tax occurs regardless of liquidity in the shares, except for startups.
  • Valuation Risk - Market value may sometimes differ from fair market value.
  • Vesting Forfeiture – Vesting options that are not vested lapse should the employee leave early.
Companies should promote transparency to allow employees to make informed decisions.

Example:

Amit Has Only 6 Months to Exercise His ESOPs, but ₹1.6 Crore — Here's How Sharescart Saves His Gains

Employee Stock Ownership Plans, or ESOPs, can have tremendous value; however, exercising them usually means a sizeable cash outlay including both the exercise price and taxes due. Let's break it down with an example.

Meet Amit

Amit works at a fast-growing, early-stage startup and has 1,00,000 vested ESOP options — this means he has the right to purchase a share of the company at a set price, but he must exercise the options within a certain time frame - in Amit's situation, 6 months

Key Details:

  • Exercise Price: ₹100 per share
  • Current Market Price (FMV): ₹300 per share
  • Tax on Capital Gains: 30%
  • Exercise Window: 6 months

The Challenge

If Amit decides to exercise his ESOPs:

  • Cost to Convert ESOPs into Shares: To convert his options into shares, Amit must pay ₹1 crore (i.e., 100,000 shares × ₹100 per share).
  • Value of Shares after Exercise: The shares are currently valued at the market value of ₹3 crore (i.e., 100,000 × ₹300), so he has a theoretical gain of ₹2 crore (₹3 crore - ₹1 crore).
  • Tax Liability: The gain will be taxed at 30%, so Amit must pay ₹60 lakh in taxes (i.e., 30% of ₹2 crore).
  • Total Cash Requirement: ₹1 crore (exercise price) + ₹60 lakh (tax) = ₹1.6 crore.

This is the issue: Amit does not have ₹1.6 crore on hand. If he does not exercise all or part of the options within 6 months, all of his ESOPs will expire worthless, and he will have lost the potential market value of ₹3 crore.

How Sharescart Assists

This is where Sharescart becomes relevant. Sharescart is a bridge funding platform that supports employees to unlock the value of their ESOPs. Here's how it works:

  1. Funding the Exercise Price & Taxes: Sharescart provides him with a fund to use to exercise his ₹1.6 crore. This allows Amit to exercise all his options on time without borrowing from his savings.
  2. Unlocking Value: After exercising the options, Amit now owns shares worth ₹3 crore in the pre-IPO or unlisted market.
  3. Selling the Shares: Amit sells these shares to an investor through Sharescart or through a pre-IPO market. After paying back the investor/fund, Amit has ₹1.4 crore, which is the true wealth he unlocked from the ESOP.
Scenario 1: Amit Exercises ESOPs via Sharescart
Amit Needs Exercise ESOP
Sharescart Funds ₹1.6 Crore
Amit exercises + ₹60 lakh
Sharescart Faciliate to ₹3 Crore
Sell shares via ESOP
Gains worth ₹3 Crore
Repay sharescart ₹1.6
Amit keeps ₹1.4 crore profit

The Result

Without Sharescart, Amit's ESOPs would have expired uselessly, missing out on a potential value of ₹3 crore.

With Sharescart: Amit exercises his options, pays tax, sells the shares, and collects ₹1.4 crore in cash. In laymen's terms: Sharescart fulfils the promise of employee invested value close to ₹1.4 crore and will sell the ESOP if the employee has no cash to purchase it, while ensuring the employees do not leave their invested value to expire because they lack cash.

Scenario 2: Amit Does Not Exercise (No Sharescart)
Does Not ₹1.6 Cr For His needs
Cannot Exercise
Options expire after 6 months
₹0 Loss
Conclusion

ESOPs as a Means to Shared Success

ESOPs are so much more than just a compensation tool — they create a culture of ownership and alignment for employees that directly supports the ongoing long-term success of the business. For employees, ESOPs can be an important opportunity for wealth building — if they (the employees) understand tax consequences, valuation, and timeframes associated with liquidity. For employers, ESOPs can provide a strategic advantage — loyalty, innovation, and a focus on a shared growth mindset are cultivated. When designed in an open and transparent way and managed in a responsible manner, ESOPs are a true win-win for employees and the organisation.

suthor
ESOP Shares

How to Buy and Sell ESOP Shares

Buying Of ESOP Shares
Choose Your Desired Shares

You can scan through the companies and decide which company to invest in. Once done, you can tell our team about the desired investment.

Payment To Sharescart

Our team will share the account details so that you can transfer the trade amount into our account. We will notify you about the document needed beforehand.

Delivery From Sharescart

The shares will reflect in your Demat account within 24 hours, depending on the holidays. Our details would be available to you before the transfer.

Portfolio management

We can help you with your portfolios by managing your investments and assisting you in the buying and selling of shares.

Selling Of ESOP Shares
Equity Details

To help you better we would require a few details related to the shares you want to sell and the price at which you want to sell.

Affirmation Of Demand

We find out a suitable buyer for you and once you accept the trade we move on to the next step.

Transfer Of Shares To Sharescart

The account details would be provided to you for the transfer of shares. We will notify you about the details needed for the trade beforehand.

Get Payment From Sharescart

Once the transfer is done, the payment would be transmitted to your account within 24 hours, depending on the holidays.

Frequently Asked Questions

All You Need To Know About ESOP Shares

When you leave without vesting, generally unvested ESOPs are cancelled. Vested ESOPs usually can be exercised after you depart, often within 3 to 6 months, depending on the company's ESOP plan.

For companies listed on a stock exchange, you can sell the shares any time after you exercise the ESOP option and the shares are in your demat account. If the company is unlisted or otherwise a startup, you can only sell the shares if and when the company announces a buyback or has a process for secondary sales.

Whenever you exercised your options to hold shares, you entered into a market risk situation, and if the valuation of the company drops, so do the shares.

Receiving ESOPs as a grant is done at no cost. The only cost is the exercise price when you exchange options for stock after vesting.

The company provides FMV (fair market value) based on periodic valuations by a merchant banker. This process gives staff an objective sense of the paper value of their holdings.

Yes. Many Indian corporations also offer ESOPs to their employees in their subsidiaries abroad, and this is subject to FEMA and RBI regulations

They should have board and shareholder approval, implement a clear ESOP policy, have valuation certificates, and communicate openly with their employees.

ESOPs allow employees to share in the value creation of the company, which provides them the ability to create wealth over time and in conjunction with the success of the company.

No, ESOPs can only be issued to employees or directors of the company, although consultants and advisors may receive similar benefits through phantom stock or SAR-based plans.

No, ESOPs are not defined as a supply of goods or services, so they are excluded from GST.

The cliff period is the amount of time an employee must be with the company before their ESOPs vest, which is typically one year.

Yes, companies can reprice or restructure ESOPs, but this requires board approval and shareholder approval if there are significant changes in market conditions.

Yes. ESOPs are valuable to the employer in that the employer is able to retain the best talent, align employee interests with company goals, and preserve cash while rewarding performance.

Wealth Icon
Don’t Miss Out on ESOPs Shares

Buy or sell ESOPs shares with confidence, backed by our research and expert guidance.

Sharescart

Buy and Sell Unlisted
Shares With Confidence

Seamless access to top private companies, verified pricing, and secure transactions only on Sharescart.

250+
Unlisted Companies
1 Lakh+
Registered users
4000+
Listed Companies
1000+
Research Reports

Excellent experience with SharesCart. The process was much easier than I imagined. My shares came on time, and the team kept me updated at every step. I’m extremely happy with their trustworthy service and smooth support.

suthor

Ramesh Kumar

I was nervous about buying unlisted shares as it was my first time. The SharesCart team explained clearly, answered all my repeated questions patiently, and never made me feel rushed. I felt completely safe dealing with them.

suthor

Vidya

I was worried about transferring money online for unlisted shares. The SharesCart team shared documents, explained everything step by step, and gave updates until my shares reached my demat account. That professional handling gave me complete peace.

suthor

Vicky Singh

The people at SharesCart are professional, approachable, and easy to talk to. Even after delivering my shares, they followed up to check if I had any doubts or concerns. That level of care helped me trust them even more.

suthor

Pawan Kumar

I’m glad I chose SharesCart for my first time in this market. The polite and patient staff were always available on call, which gave me confidence to start small. Now I’m ready to gradually invest more.

suthor

Pradeep

I had zero idea about unlisted shares. SharesCart explained everything in simple words without confusing jargon. It honestly felt like I was speaking to a friend, not a broker. That patient support made the entire experience amazing.

suthor

Vikas Chawla

My shares were delivered much faster than expected. SharesCart made the process smooth and stress-free throughout. Clear instructions, timely updates, and quick execution made me feel completely confident in their efficiency and professionalism.

suthor

Kajal Sharma

I was impressed by the range of unlisted companies available on SharesCart. Having so many options in one place made it easier to compare and choose what was best for me. The platform really simplified the selection process.

suthor

Virender Singh

Making payments felt secure and straightforward. SharesCart offered simple instructions and confirmation at every step, which reduced my anxiety. The hassle-free payment process gave me confidence that my money was safe and handled professionally.

suthor

Shyamak

What stood out was the information available about each company. The insights and details provided by SharesCart helped me make an informed choice rather than just guessing. That extra research support made a big difference for me.

suthor

Mohit Verma

News

Unlisted News & Reports

IPO Countdown Begins: NCLT Approves Flipkart Move Back to India

IPO Countdown Begins: NCLT Approves Flipkart Move Back to India

Flipkart has received NCLT approval to shift its holding company domicile from Singapore back to India, clearing a key reg...

2:05 PM | 15 Dec, 2025
ICC Partners with AB InBev as Official Beer Sponsor for Global Tournaments from 20...

ICC Partners with AB InBev as Official Beer Sponsor for Global Tournaments from 20...

AB InBev becomes ICC’s Official Beer Partner from 2026, with Budweiser 0.0 leading in India, aiming to enhance globa...

12:55 PM | 15 Dec, 2025
SBI Funds Management Rewards Shareholders with 3:1 Bonus; Capital Expansion Gets 9...

SBI Funds Management Rewards Shareholders with 3:1 Bonus; Capital Expansion Gets 9...

SBI Funds Management has announced a 3:1 bonus issue, rewarding shareholders with three additional shares for every one he...

12:38 PM | 15 Dec, 2025
SBI Mutual Fund Starts Process to Appoint Merchant Bankers for Proposed IPO

SBI Mutual Fund Starts Process to Appoint Merchant Bankers for Proposed IPO

SBI Mutual Fund has kicked off preparations for its proposed IPO by initiating the appointment of merchant bankers, with a...

12:58 PM | 13 Dec, 2025
CERC Delivers Big Win for RE Sector & Solar, Wind & Storage Get Long-Await...

CERC Delivers Big Win for RE Sector & Solar, Wind & Storage Get Long-Await...

CERC has delivered a major boost to India’s renewable energy sector by resolving seven critical bottlenecks in the G...

6:32 PM | 12 Dec, 2025
AB InBev India Nears Break-Even: Premium Beer Driving a Big Turnaround

AB InBev India Nears Break-Even: Premium Beer Driving a Big Turnaround

AB InBev India is showing a strong turnaround in FY25, with revenue rising, losses sharply reduced, gross margins hitting ...

11:41 AM | 12 Dec, 2025
BoAt's Auditors Sound Alarm: Financial Mismatches & Compliance Gaps Unear...

BoAt's Auditors Sound Alarm: Financial Mismatches & Compliance Gaps Unear...

BoAt’s auditors have flagged mismatched financial statements, compliance lapses, and governance gaps across FY23&nda...

12:03 PM | 11 Dec, 2025
𝗣𝗼𝗹𝘆𝗺𝗮𝘁𝗲𝗰𝗵 𝗔𝗚𝗠

𝗣𝗼𝗹𝘆𝗺𝗮𝘁𝗲𝗰𝗵 𝗔𝗚𝗠

Polymatech’s AGM showcased a strong FY25 with ₹1,912 Cr in total income and ₹375 Cr PAT, reinforcing its financi...

4:56 PM | 10 Dec, 2025
US Defence Startups Are Growing Fast - But Struggling to Build Weapons at Scale

US Defence Startups Are Growing Fast - But Struggling to Build Weapons at Scale

US defence-tech startups are seeing sharp valuation growth, but most remain stuck at prototype stage due to weak manufactu...

12:48 PM | 09 Dec, 2025
Inox Clean Energy Halts ₹6,000-Crore IPO: Here’s Why the Mega Listing Is o...

Inox Clean Energy Halts ₹6,000-Crore IPO: Here’s Why the Mega Listing Is o...

Inox Clean Energy has put its ₹6,000-crore IPO on hold after securing nearly ₹5,000 crore in pre-IPO funding, reducing...

12:31 PM | 09 Dec, 2025
whatsapp