The Suryoday ESOP grant approved by Suryoday Small Finance Bank Ltd’s Nomination and Remuneration Committee on September 9, 2026, covers 1,59,672 employee stock options at Rs 195.53 each, according to a BSE filing posted on September 10. The options are for eligible employees under the Suryoday ESOP Scheme–2019, subject to applicable regulatory compliances.

Each option gives its holder the right to apply for and receive one equity share with a face value of Rs 10. Consequently, the grant could result in the issuance of up to 1,59,672 equity shares if the options vest and employees exercise them. The disclosure concerns an option grant; issuance of the underlying shares remains conditional.

The bank reported options exercised, money realised from exercise and diluted earnings per share arising from exercise as not applicable in this filing.

Pricing and vesting terms

The scheme links the grant or exercise price to the previous day’s closing share price on the stock exchange recording the highest trading volume in the bank’s shares. If that price falls below book value based on the latest audited results, the scheme uses book value instead. The disclosed grant price is Rs 195.53 per option.

Vesting depends on continued employment and compliance with the scheme and grant letter. The committee determines the schedule within these limits:

  • A minimum of one year must separate the grant date and vesting.
  • Options must vest within a maximum of five years from the grant date.
  • Where performance-based vesting applies, employees must meet the specified performance parameters.

Individual grant letters will set out the applicable vesting schedules and conditions.

Exercise window and scheme history

Vested options carry a five-year exercise period from vesting. The scheme provides four exercise windows per financial year, each open for at least 10 days, with advance notice to grantees. Unexercised options lapse when the exercise period expires.

For resignation without misconduct or breach of employment terms, unvested options expire. Vested options remain exercisable within 90 days of the last service date or until the exercise period ends, whichever comes earlier.

Shareholders initially approved the scheme in September 2019, approved an amended scheme in July 2020 and ratified it in September 2021. Subsequent modifications received shareholder approval in September 2024 and on August 6, 2026.

Source: BSE corporate announcement.