Understanding IT sector

Good discussion on ESOP(s).
ESOP(s) are generally given during specific time periods, and the employee exercising the ESOP has to pay perquisite tax based on the difference between CMP and ESOP price. This tax is as per the employee tax bracket.
Generally ESOP(s) are purchased by employees when this difference is high so that they can see some gains immediately. If they believe in company business and growth then certainly they hold these ESOP(s) for longer time-frame. But as an investor if the the CMP exceeds way beyond Intrinsic Value, then it makes sense to sell some ESOP shares and book profit. You need to think just as an investor in the business.

There will be situations when you may get share at CMP which is close to (ESOP Price + Perquisite Tax), then you can buy directly from Market instead of waiting for exercising ESOP(s). ESOP(s) have generally longer exercise period of 5 years, so you have to exercise ESOP(s) as per this schedule of 5 years.

Just thought of highlighting few points for understanding of all.