By Prashant Marathe | 23 May 2025 | EduInvesting
📌 At a Glance
Devyani International, the franchise king behind KFC, Pizza Hut, Costa Coffee, just served up a hot batch of stock options.
👨🍳 Grant: 3,90,200 ESOPs
🍕 Scheme: ESOP 2021
💰 Exercise Price: ₹147.60
📈 CMP: ₹181.20 (up 0.56%)
⌛ Vesting: Min 1 year, exercise window 5 years
🔐 Lock-in: None
📃 Conversion: 1 ESOP = 1 equity share (Face value ₹1)
💼 What Was Announced?
The Nomination and Remuneration Committee (NRC) met on May 23, 2025 and approved:
Grant of 3.9 lakh ESOPs to eligible employees under the ESOP 2021 scheme, priced at ₹147.60 per share.
🎯 Why This Matters
With CMP at ₹181.20, these ESOPs are already in the money — meaning employees can make gains if stock holds above ₹147.60 when their options vest.
- Gain per ESOP = ₹33.60 (today’s spread)
- Total paper gain = ₹1.31 Cr (at current price)
Of course, they can’t cash it yet — but the message is clear:
“Work hard, and one day you too shall eat Pizza Hut equity.”
📊 ESOP Terms Summary
| Term | Detail |
|---|---|
| Grant Size | 3,90,200 stock options |
| Conversion Ratio | 1 option = 1 equity share |
| Exercise Price | ₹147.60 |
| CMP (23 May 2025) | ₹181.20 |
| Vesting Period | Min 1 year from grant date |
| Exercise Window | 5 years post-vesting |
| Lock-in | None |
| Dilution Impact | To be disclosed later |
🧠 EduInvesting Take
This is standard HR + shareholder balancing.
- Employees win if stock rises
- Company saves cash via stock-based comp
- Investors dilute a bit, but not materially (~0.03%)
Given Devyani’s consistent growth in store count and brand mix (KFC, PH, Costa, Vaango), this ESOP grant makes sense.
But also: let’s not pretend this is life-changing for shareholders.
📉 Investor Impact?
Almost zero. This is routine dilution — not a red flag.
If 100% options vest and convert, total dilution = ~0.03%
(Devyani has ~127 Cr shares outstanding)
Market shrugged it off with a mild +0.56% move — CMP ₹181.20
🧾 What’s Next?
- Shares to be allotted once employees vest + exercise
- Devyani will reflect diluted EPS only upon conversion
- ESOP overhang increases slightly, but not enough to impact fundamentals
🏷️ Tags
Devyani International ESOP 2025, KFC India Stock Options, Pizza Hut Franchisee India, Devyani Stock Price, ESOP Grant May 2025, EduInvesting, CMP ₹181, ESOP Explained, NSE Devyani ESOP News
