How ESOPs helped an illiquid Small-cap to grow from Rs. 1.5K Crs to 50K Crs! valuation

A company of just Rs 1,500 Cr market cap in 2011 got transformed into a company of an approx. Rs 50,000 Cr plus market cap by 2024. By the way, this growth has been sustainable even in the market fall of 2025, as this company has already become a market leader in its industry.

ESOPs were implemented in year 2011, when the company was listed on BSE only with a double-digit daily trade volume. The task was to structure grant of ESOPs for the Senior Management with appropriate numerical scenario analysis in different growth scenarios. As the company started growing, people started realizing the value of ESOPs in hand.

The ESOP structure was planned in a way to promote 2 objectives - (i) retention, and (ii) corporate growth. Grant structure was made simply focusing on appropriate employee selection, vesting period, vesting percentages, vesting conditions, and discount pricing. There were regular employee communications on growth outlook with the 1st ESOP session taken (by our Partner) right upon 1st grant.

Though, its difficult to hold that “ESOPs alone” have brought this exemplary growth; but denial of ESOPs’ role is also equally difficult.

It is a classic case of near 35 times value growth creating a life changing WIN-Win for owners and employees. A 5% equity dilution by Promoters/ investors with a foreseeable ESOP analysis did the things right.