ESOP Valuation (Black-Scholes, OPM)

Our services include valuation of ESOPs using the Black-Scholes model, a widely accepted methodology for pricing stock options. This approach accounts for factors such as exercise price, volatility, risk-free rate, and expected option life to determine fair value.

We also provide valuations using the Option Pricing Model (OPM) for complex or customized ESOP schemes. This method offers a tailored assessment that incorporates company-specific factors and prevailing market conditions.

In addition to valuation, we prepare detailed reports for accounting, regulatory filings, and Income Tax compliance. This ensures ESOP-related expenses are accurately reflected in financial statements and tax obligations are properly addressed.

We further offer advisory support on ESOP structuring, grant strategies, and regulatory compliance. Our comprehensive approach helps businesses design effective incentive plans while ensuring transparency and adherence to statutory requirements.

Key Features / Scope of Work

• Valuation of ESOPs using the Black-Scholes model

• Valuation using the Option Pricing Model (OPM) for customized schemes

• Preparation of detailed ESOP valuation reports for accounting and regulatory compliance

• Advisory support on ESOP structuring and grant strategies

• Ensuring compliance with the Companies Act, Income Tax Act, and accounting standards

• Assessment of tax implications and reporting requirements

• Support for financial reporting, audits, and regulatory submissions

• Transparent, defensible, and audit-ready ESOP valuations