Cera Sanitaryware Limited has announced the exercise of stock options under its Employee Stock Option Scheme 2024 (ESOS 2024). Eligible employees exercised 2,109 options that were granted on June 5, 2024, and vested on June 5, 2026. The shares for this exercise have been sourced from the secondary market, resulting in no change to the company’s paid-up equity share capital. The CERA Sanitaryware Employees Welfare Trust is managing the transfer of these equity shares.
Employee Stock Option Exercise
Cera Sanitaryware Limited has officially notified the exercise of stock options by its employees. Under the ‘Cera Sanitaryware – Employee Stock Option Scheme 2024’ (ESOS 2024), eligible employees have exercised a total of 2,109 options. These options were originally granted on June 5, 2024, and had vested on June 5, 2026.
Scheme Details and Share Transfer
The ESOS 2024 scheme involved the granting of 14,950 options in total. The exercise price for these options was set at the face value of the Company’s shares, which is Rs. 5/-. A total of 2,244 options were vested as of June 5, 2026, representing 15% of the total granted options on the second anniversary of the grant date. The current exercise of 2,109 options represents a portion of these vested options. The CERA Sanitaryware Employees Welfare Trust is currently facilitating the transfer of the equity shares to the employees who exercised their options.
Impact on Share Capital
Significantly, this exercise of stock options will not impact the company’s paid-up equity share capital. This is because the required shares have been obtained from the secondary market, rather than through new issuance. Consequently, there is no dilution of equity.
Significant Terms of the Scheme
The ESOS 2024 scheme outlines several key terms, including a minimum vesting period of 1 year and a maximum of 5 years from the grant date. Vesting is structured according to a schedule: 10% on the 1st anniversary, 15% on the 2nd, 15% on the 3rd, 30% on the 4th, and 30% on the 5th anniversary of the grant date. The exercise period for vested options can extend up to 5 years from the relevant vesting date. The exercise price per option was Rs. 5/-, leading to a total realization of Rs. 10,545/- for the 2,109 exercised options. The scheme is in compliance with SEBI (Share Based Employee Benefits) Regulations, 2021.
Source: BSE
