Mahindra to gift Rs 500 cr in company stock to over 14,000 workers as Diwali bonus

In an unprecedented Diwali gesture, the Mahindra Group will distribute Rs 500 crore worth of company stock to more than 14,000 of its employees — including factory and shopfloor workers — marking a significant step in inclusive wealth creation within Indian industry.

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This initiative spans across three of its key subsidiaries: Mahindra & Mahindra (auto and farm sectors), Mahindra Electric Automobile, and Mahindra Last Mile Mobility. Employees who qualify for the one-time grant must be on the company’s permanent payroll and have completed at least one year of service as of the announcement date.

The distribution will be made through Restricted Stock Units (RSUs), a form of employee stock option plan (ESOP) that vests over a period of time, granting recipients an equity stake in the company, according to CNBCTV-18. This marks the first instance in India where a Diwali bonus is being paid in the form of stock, and also the first time Mahindra has extended stock ownership to its blue-collar workforce.

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This move positions Mahindra as only the second Indian conglomerate to implement such a substantial ESOP scheme for its factory workers, following the JSW Group’s Rs 1,000 crore ESOP plan launched in August 2021.

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By offering equity to its frontline workers, Mahindra is not only recognising their contribution but also aligning them more closely with the company’s long-term growth. The decision reflects a growing trend among Indian corporates to democratise wealth and foster deeper employee engagement — reaching beyond white-collar circles into the factory floor.