Tata Motors on Friday said it has granted performance share units and stock options to employees. They carry the right to apply for equivalent number of ordinary shares of the company, subject to terms and conditions of vesting in the scheme.

In 2018, Tata Motors issued stock options (ESOPs) to its employees, making it the first company in the group to do so. In June this year, the homegrown auto maker came out with another first — share units to retain talent.

The board of Tata Motors had then approved the issue of performance shares or options to eligible employees of the company and its subsidiary companies under the long term incentive scheme.

Performance shares is an incentive given to an employee if certain performance parameters or objectives are met whereas ESOPs are part of the compensation package.

The issue of these preference shares was subject to shareholder approval.

Tata Motors on Friday said that following the shareholder approval in July 30, the Nomination and Remuneration Committee (NRC) of the board at its meeting held on Friday has approved the grant of 8,76,210 stock options and 9,64,614 performance share units in aggregate, to the eligible employees.

While the performance share units will be granted to 255 employees, the options will go to 22 employees.

Meanwhile, shares of Tata Motors were in demand on Friday on reports that TPG group is in negotiations with the company to invest more than $1 billion in its electric vehicle division and that the investment would value the arm at around $9 billion. The reports said Tata Motors is also in negotiations with some sovereign wealth funds like Abu Dhabi Investment Authority.

On the BSE, shares of Tata Motors ended at Rs 382.95, a gain of 1.74 per cent, or Rs 6.55, over the last close. During intra-day trades, the share hit a 52-week high of Rs 398. At close, it had a market cap of Rs 1,27,151.19 crore.

Last month, Tata Motors had said that its electric vehicles achieved a cumulative sales milestone of 10,000 units. Tata Motors had entered the electric vehicle space with Tigor EV as a fleet offering, and then expanded to the personal segment through Nexon EV in January 2020.

The company has also increased its charging infrastructure via more than 700 installations in 120 cities across the country.