Nuvama Wealth Management Approves Employee Stock Appreciation Rights Scheme 2026
Nuvama Wealth Management Limited has approved the 'Nuvama Wealth Management Limited Employee Stock Appreciation Rights Scheme 2026' (ESAR 2026). The scheme, developed by the Board of Directors and is subject to eventual approval from the Company’s Members, aims to reward eligible employees for their performance and drive commitment to the company’s growth and profitability.The ESAR 2026 initiative is designed to attract, retain, and reward talent across Nuvama Wealth Management Limited, its existing and future subsidiaries, and/or associate companies (collectively 'Eligible Employees').
Under the proposed scheme, a maximum of 1,37,00,000 Stock Appreciation Rights (ESARs) may be granted. The principal object is to align employee rewards with long-term shareholder value creation while limiting dilution, as settlement is linked to the appreciation in the market value of the underlying Equity Shares over the applicable ESAR price.
Details pertaining to the scheme include:
| Particular | Details |
|---|---|
| Total Grant Limit (ESARs) | 1,37,00,000 |
| Participants | Eligible Employees of Nuvama Wealth Management Limited and its associated entities |
| Shares Covered by ESARs | Maximum 1,37,00,000 Equity Shares |
| Face Value per Share | Rs. 2/- |
| Scheme Purpose | To reward performance and motivate contribution to company growth and profitability |
Key Terms and Conditions of ESAR 2026
The scheme is structured to ensure long-term engagement for employees, with terms determined by the Nomination and Remuneration Committee (NRC).Pricing Formula:
The ESAR price will be set based on the market price of the Equity Shares, which may include a discount of up to ten percent. For this purpose, market price is defined as the latest available closing price on the recognized Stock Exchange immediately prior to the relevant date.
Vesting and Exercise Periods:
The scheme sets specific timeframes for the grant and utilization of the ESARs:
- Grant Horizon: The ESAR 2026 is expected to have a grant horizon of approximately four to five years.
- Vesting Period: A minimum vesting period of one year and a maximum of six years from the date of grant has been established.
- Exercise Period: The exercise period for vested ESARs will run for a minimum of one year and a maximum of five years, commencing from the date of each vesting.
The structure is based on an ESAR framework, meaning the actual number of Equity Shares issued upon the Exercise of such ESARs is expected to be materially lower than the initial ESAR pool, as settlement relies on the appreciation in value rather than the full value of the underlying shares.
NUVAMA Stock Price Movement
Today, Nuvama Wealth Management Limited shares rallied, settling at ₹1771.2 after gaining 1.18% in post-market trading. The stock closed on a strong day, with total volume reaching 532,376 and continuing to hover near its 52-week high of ₹1787.3.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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