AU Small Finance Bank provided a crucial update regarding the methodology for determining the exercise price under the AU Employees Stock Option Scheme 2023 (AU ESOS 2023). The exercise price will now be explicitly linked to the Market Price, calculated as the 26-week average of the Volume Weighted Average Price (VWAP) on the exchange with higher trading volumes immediately prior to the NRC meeting. The bank clarified that any future changes to this calculation will require explicit shareholder approval.
Clarification on Employee Stock Option Pricing
AU Small Finance Bank Limited has issued a follow-up communication providing detailed clarification on the mechanism for setting the exercise price for options granted under the AU Employees Stock Option Scheme 2023 (AU ESOS 2023), as part of a previously announced Postal Ballot.
New Exercise Price Formula
The exercise price for all options under AU ESOS 2023 will be directly linked to the Market Price. The formula, determined by the NRC, mandates the use of the average of the weekly high and low of the Volume Weighted Average Price (VWAP) of the Equity Shares. This average must be calculated over the last twenty-six weeks immediately preceding the date of the NRC meeting.
This calculation must specifically reference the Stock Exchange that demonstrated higher trading volumes during that period. Furthermore, the exercise price will strictly not be less than the face value of the bank’s equity share, adhering to provisions of the Companies Act, 2013.
Future Governance and Approval
The bank explicitly confirmed that this 26-week VWAP average method will apply without exception to all future grants under AU ESOS 2023. The disclosure emphasized that should the bank propose any future change to the grant price calculation methodology for AU ESOS 2023, it will be required to seek explicit approval from shareholders.
This announcement was signed by Manmohan Parnami, Company Secretary and Compliance Officer, on February 12, 2026.
Source: BSE
