Tata Motors Passenger Vehicles Board Approves Share-Based Incentive Scheme 2026
Tata Motors Passenger Vehicles Limited, formerly Tata Motors Limited, has announced that its Board of Directors approved a new employee incentive framework. Based on the recommendation of the Nomination and Remuneration Committee, the Board adopted the 'Tata Motors Passenger Vehicles Limited Share-based Long Term Incentive Scheme 2026' during its meeting held on May 14, 2026.The approval of the scheme, which is in compliance with the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021, involves granting eligible employees up to 50,00,000 Equity Shares of the Company.
The allotment of these shares, if implemented, could result in a maximum dilution of approximately 0.14% of the Company's total issued share capital. The scheme is subject to the approval of the shareholders at the ensuing Annual General Meeting and other necessary statutory approvals.
Key Details of the Incentive Scheme
The scheme, which grants Performance Share Units (PSUs), provides significant incentives to eligible employees. Each PSU carries the right to apply for an equivalent number of Equity Shares of the Company, each having a face value of ₹2/-.The terms of the scheme include a defined window for employees to exercise their rights. The Exercise Period will begin from the date of vesting of the PSUs and must be completed within twelve months from that vesting date.
The primary financial parameters associated with the scheme are summarized below:
| Particulars | Detail |
|---|---|
| Total Number of PSUs Granted | 50,00,000 (Fifty lakhs) |
| Equity Shares per PSU | 1 Equity Share |
| Face Value of Equity Shares | ₹2/- each |
| Maximum Shares Allotment | 50,00,000 Equity Shares |
| Potential Dilution | ~0.14% of total issued share capital |
| Exercise Period | 12 months from the date of vesting of PSUs |
TMPV Stock Price Movement
Today, Tata Motors Passenger Vehicles Limited shares edged higher to close at ₹338.75, marking a gain of 0.34% for the session. The stock saw significant activity, trading on a high volume of 7.98 million shares.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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