Traveltech firm ixigo's board approves ESOS 2025 with 1.2 crore stock options

Le Travenues Technology, which operates the travel booking platform ixigo, announced that its board of directors has approved a new Employees Stock Option Scheme 2025.

The plan involves granting up to 1.2 crore stock options, each convertible into one equity share of the company. The exercise price under ESOS 2025 is set at Rs 93 per option, matching the issue price from the company’s initial public offer.

The board also recommended extending the scheme to employees of its subsidiaries and holding companies, with final approval now resting in the hands of shareholders through a postal ballot.

Key terms of the scheme

According to a regulatory filing, ESOS 2025 is designed to reward key executives for their contributions and align their goals with ixigo’s long-term growth.

The scheme is structured so that the options will vest only if the company reaches certain valuation milestones. If ixigo achieves a market capitalization of Rs 9,000 crore at any point within 33 months of the grant date, 50% of the granted options will vest. If the company’s valuation climbs to Rs 14,000 crore within 69 months, the remaining 50% of the options will vest. 

If these targets are not reached within their respective deadlines, the unvested options will lapse and be returned to the pool for possible regrant.

The vesting schedule runs for a maximum of five years from the date of each vesting milestone, after which any unexercised options will expire.

Market capitalization targets

The company explained that market capitalization will be determined using a 30-day moving volume-weighted average price on either the NSE or BSE, depending on which has the higher trading volume. This price will then be multiplied by all outstanding shares on a fully diluted basis.

Fully diluted means including any equity shares issued upon exercise of other employee stock options currently in circulation under existing schemes.

Approvals and next steps

Under ESOS 2025, co-founders Aloke Bajpai and Rajnish Kumar may each receive grants amounting to at least 1 percent of ixigo’s issued share capital, pending shareholder endorsement.

The plan has been confirmed to be in line with the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. The board meeting also approved a notice of postal ballot to seek shareholder consent for the scheme and the specific grants proposed for the two co-founders.

The company has positioned ESOS 2025 as a deferred incentive that it hopes will retain and motivate its leadership team, ultimately benefiting both the executives and the shareholders as ixigo pursues ambitious growth targets.