List of Companies Offering ESOP in India

Explore the list of the companies that offer ESOP in India.
List of Companies Offering ESOP in India
3 mins read
25-June-2025

Getting rewarded for your contribution to a company’s success feels great, right? Now imagine being a partial owner of that company too. That is what ESOP companies offer a chance for employees to grow their wealth and influence the company’s future at the same time. Employee Stock Ownership Plans (ESOPs) are more than just perks. They turn employees into shareholders, creating a strong sense of loyalty and long-term motivation. Whether you are working in IT, finance, manufacturing, or a startup, ESOPs are becoming a popular way to say "We are in this together."

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Let us explore the most prominent ESOP companies in India, how these plans are structured, and why employee ownership is catching on fast.

Comprehensive list of companies offering ESOPs

Here are some of the leading Indian companies that offer ESOPs to eligible employees, across industries like IT, banking, manufacturing, and telecom:

1. Infosys

One of the earliest adopters of ESOPs in India, Infosys offers generous stock options to attract and retain high-performing talent. Employees are rewarded for their long-term contributions and can benefit from the company’s consistent market performance.

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2. Tata Consultancy Services (TCS)

As a global IT giant, TCS includes ESOPs as a key part of its compensation plan for senior and mid-level roles. ESOPs at TCS help build a long-term growth mindset among employees.

3. Reliance Industries Limited (RIL)

RIL has structured its ESOP schemes to reward high-performing individuals across its vast business empire. From telecom to retail, the company uses ESOPs to promote internal entrepreneurship.

4. HDFC Bank

This private sector bank offers ESOPs to a select set of employees, enabling them to grow wealth alongside the institution’s rapid expansion and market gains.

5. Wipro

Wipro leverages ESOPs not just for retention but also for empowering employees to think like stakeholders. These plans help align personal success with company success.

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6. Mahindra & Mahindra

This auto giant uses ESOPs to encourage loyalty and long-term thinking. Employees are offered stock ownership as a token of their contribution to the brand's legacy.

7. Axis Bank

Axis Bank provides ESOPs to strengthen employee engagement, allowing them to grow along with the bank’s performance.

8. Bajaj Auto

Bajaj Auto’s ESOP plan is part of its strategy to reward innovative thinking and business ownership among its employees.

How well is employee ownership working?

Companies offering ESOPs often witness a positive shift in workplace culture and performance. But how do we measure whether it's truly effective?

  • Boost in performance: Employees who own stock are often more productive, leading to better overall company performance.
  • Greater engagement: People feel a deeper connection with the company’s goals, increasing participation and team spirit.
  • Better retention: ESOPs help reduce attrition by creating long-term value and loyalty among employees.
  • Innovation culture: A sense of ownership pushes employees to innovate and go the extra mile.
  • Stronger work ethics: Employees with skin in the game are more likely to think long-term and act responsibly.

Why are ESOPs gaining traction in India?

As the Indian startup ecosystem grows and larger firms focus more on long-term value creation, ESOPs are becoming more mainstream. Here's why:

  • Startups use ESOPs to attract top talent without upfront cash outflow.
  • Established companies use them for talent retention and internal leadership development.
  • Investors view ESOPs as a sign of good corporate governance and employee alignment.

Benefits of working for ESOP companies

Choosing to work for a company that offers Employee Stock Ownership Plans (ESOPs) can have significant long-term advantages, both financially and professionally. Employees at such companies often experience multiple benefits that go beyond the typical salary and perks.

  • Wealth creation: ESOPs provide an opportunity to accumulate wealth over time as the company grows. Employees receive ownership in the form of shares, and as the company’s valuation increases, so does the value of these shares. It is a powerful way to build long-term assets without upfront investment.
  • Financial flexibility: Employees with vested ESOPs have the option to either liquidate their shares or leverage them through financing, depending on their immediate financial goals. This flexibility can be useful for fulfilling personal needs like home buying, education, or funding a new business all without needing to sell shares prematurely.
  • Stronger commitment and ownership mindset: When employees own a part of the company, they tend to take more responsibility and initiative. This sense of ownership often translates to higher performance, accountability, and stronger alignment with business goals.
  • Retirement planning and long-term security: ESOPs can act as a valuable asset for retirement. Employees can plan their future more effectively, knowing they have a stake in a company that may continue to grow and provide financial returns even after they exit.

How are ESOPs structured in India?

ESOP schemes typically follow a structured format:

  • Grant: This is the initial offer where the company gives eligible employees the right (but not obligation) to buy a certain number of shares at a later date. This grant usually comes with conditions such as performance or tenure.
  • Vesting period: ESOPs do not become fully accessible right away. There is a mandatory waiting period known as the vesting period. Only after this period can employees exercise their rights to buy the shares. Vesting may also be phased, meaning a percentage of shares vest each year.
  • Exercise price: Once the shares have vested, employees can purchase them at a predetermined price, which is often lower than the market value. This allows them to buy shares at a discount and benefit from the appreciation in value.
  • Exercise period: Employees are given a limited timeframe to exercise their vested options. Missing this window could mean losing the opportunity to purchase the shares altogether. Timely action is crucial.

Understanding each stage of the ESOP lifecycle helps employees plan strategically whether they want to hold the shares for long-term gains or monetise them at the right time.

Conclusion

Employee Stock Ownership Plans (ESOPs) are reshaping the Indian job landscape. Companies across sectors are now offering stock ownership not just as a financial reward, but as a way to build a culture of trust, ownership, and shared success. Whether you’re at a leading IT firm, a private bank, or a fast-growing startup, the opportunity to hold equity in your employer can be a game-changer.

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Frequently asked questions

What companies offer ESOPs?
ESOPs, or Employee Stock Ownership Plans, are offered by a wide range of companies across various industries. Some well-known companies that offer ESOPs include Infosys, Tata Consultancy Services (TCS), Reliance Industries Limited (RIL), HDFC Bank, Wipro, Mahindra & Mahindra, Axis Bank, and Bajaj Auto in India. These companies use ESOPs as a way to reward and retain employees by offering them a stake in the company's ownership.
What is an ESOP in a company?
An Employee Stock Ownership Plan (ESOP) is a company-sponsored retirement plan that allows employees to become partial owners of the company by acquiring shares of the company's stock. ESOPs are typically offered as part of an employee benefits package and are designed to align the interests of employees with those of the company's shareholders.
Which companies can issue ESOP?
Any company, whether public or private, can issue Employee Stock Ownership Plans (ESOPs) to its employees. ESOPs are typically used by companies as a form of employee benefit and a way to align the interests of employees with those of the company's shareholders. ESOPs are more commonly offered by publicly traded companies, but private companies can also issue ESOPs to their employees.
Are ESOPs common in Indian startups?

Yes, ESOPs are widely used in Indian startups to attract and retain talent. They allow employees to own equity, creating long-term wealth and aligning their interests with the company’s growth.

Do ESOPs have tax implications in India?

Yes, ESOPs are taxed at two stages in India—first as a perquisite when shares are allotted, and second as capital gains when those shares are sold, based on the holding period and sale price.

How can employees benefit from ESOPs?

Employees benefit from ESOPs by purchasing shares at a predetermined price and potentially selling them at a higher market value later, enabling wealth creation and a direct stake in the company’s success.

What happens to ESOPs during an IPO or buyback?

During an IPO or buyback, employees may get a chance to sell their vested ESOPs. This can result in significant liquidity, allowing them to convert part of their equity into cash.

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