Neogen Chemicals Limited announced the approval of a new stock option tranche under its NCL ESOP Scheme 2024. The Nomination and Remuneration Committee approved the grant of 50,200 Stock Options (Tranche-II Grant) to 55 eligible employees on February 11, 2026. Additionally, the committee approved the vesting of 4,650 options that were granted earlier under the Tranche-I Grant, effective April 1, 2025.
ESOP Scheme Update: Tranche II Grant Approval
On Wednesday, February 11, 2026, the Nomination and Remuneration Committee (NRC) of Neogen Chemicals Limited convened to approve key actions related to the company’s Employee Stock Option Scheme 2024 (“NCL ESOP Scheme 2024”).
The primary approval was for the “Tranche-II Grant,” involving the grant of 50,200 Stock Options. These options are convertible into an equal number of Equity Shares of the Company, each with a face value of Rs. 10/-.
- Recipients: The grant was awarded to 55 Eligible Employees of the Company and its Subsidiary Company(ies) in India.
- Exercise Price (Tranche-II): The Exercise Price for this grant is set at Rs. 1,183.14 per Option. This price reflects a 10% discount on the Market Price (closing price on the previous trading day from the grant day).
Tranche II Vesting Schedule
The vesting schedule for the 50,200 options granted in Tranche II is set to occur over the next three years:
- April 1, 2027: 25% of the eligible options granted will vest.
- April 1, 2028: An additional 25% of the eligible options granted will vest.
- April 1, 2029: The final 50% of the eligible options granted will vest.
Once vested, options can be exercised partly or wholly within a maximum period of 2 (Two) years from the respective vesting date.
Tranche I Vesting Confirmation
In the same meeting, the NRC also approved the vesting of options previously granted under the initial allocation:
- Vested Options: 4,650 employee stock options granted to employees of the Company and its Subsidiaries under the Tranche-I Grant have been approved for vesting.
- Vesting Date: The vesting is effective on April 1, 2025.
Tranche I Vesting Details Recap (Granted April 1, 2025)
The Tranche I Grant originally involved 36,400 ESOPs to 41 employees. The vesting structure was sequential:
| Time Period | Date of Vesting | % Vested |
|---|---|---|
| At the end of 1st year | April 1, 2026 | 25% |
| At the end of 2nd year | April 1, 2027 | 25% |
| At the end of 3rd year | April 1, 2028 | 50% |
The Exercise Price for Tranche I was set at Rs. 1,389/- per Option.
Scheme Overview
The NCL ESOP Scheme 2024 has a total maximum limit of 2,50,000 Options. Upon exercise, each option converts into one fully paid-up equity share of Rs. 10/-, representing approximately 0.95% of the total paid-up share capital.
The overall scheme grants are administered by the NRC via a Trust Route, allowing for shares to be acquired through Secondary Acquisition from the market and/or Fresh allotment from the Company.
All resulting equity shares allotted upon the exercise of these options will rank pari-passu with existing Equity Shares and will not be subject to any lock-in period.
Source: BSE
