Tata Power’s Nomination and Remuneration Committee has approved the grant of 64,88,790 employee stock options to eligible employees under its ESOP 2023 Plan, the company informed the stock exchanges on Wednesday.
The approval was disclosed on November 11, 2026 alongside the board’s audited standalone and consolidated financial results for the quarter and half-year ended September 30, 2026. The grant marks the fifth tranche issued under ‘The Tata Power Company Limited – Employee Stock Option Plan 2023’, which shareholders adopted on September 25, 2023, with a total approved ceiling of 3,57,36,560 options.
Each option is exercisable into one equity share of face value ₹1 each, in line with the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. Under the plan’s standing terms, options granted vest no earlier than 1 year and no later than 3 years from the grant date, and vested options may be exercised within a maximum of 2 years from the date of vesting.
The ESOP 2023 Plan is Tata Power’s primary long-term equity compensation framework. In its HR Compendium filed with public disclosures, the company states that the plan provides “opportunity for the employees to participate in the growth of the Company.” The maximum vesting period of options granted under the plan is 3 years.
Tata Power has drawn on the plan steadily since the inaugural tranche of 64,82,940 options granted on November 8, 2023, at an exercise price of ₹249.80. Subsequent grants include 74,620 options on July 16, 2024, 35,26,090 options on October 30, 2024, and 50,73,760 options on November 11, 2025, at an exercise price of ₹395.85 per option. With the current tranche, cumulative options granted under the plan stand at approximately 2.16 crore, or roughly 60% of the shareholder-approved ceiling.
Tata Power shares closed at ₹359.65 on November 11, 2026 on NSE. The stock gained 0.40% to ₹360.95 on Thursday after the company reported a 17.93% year-on-year rise in consolidated net profit to ₹1,652.04 crore for the quarter ended September 30, 2026. The ESOP approval came on the same day as the board’s appointment of Sanjay Banga as CEO Designate, effective November 11, 2026, who is set to assume the role of CEO and Managing Director on May 1, 2027.
