FuzzyWalrus

How much did you earned through esops via IPO?

Primarily, my question targets startups which went ipo where you may joined when it was a private company and later it went public and you liquidates it.

will your esop units gets multiplied before ipo?
will exercise price gets increased before ipo?
what about the tax?
are there any unknowns and nuances involved which you were not aware of and later realised? I hold esops in a startup and want to understand how this works during an IPO

26mo ago

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JumpyPickle

Perfios software25mo

@Jonsnoww Here's what I am aware of:

Will your esop unit get multiplied? If the share price is around 1k/2k before the ipo, there is a good chance of a stock split / bonus shares issuance, which would increase the number of esops you hold
Will exercise price increase before ipo?
This would vary from company to company
Tax? There would be a perquisites tax and a stcg/ltcg tax whenever there is a profit booking involved
Unaware of this