Lloyds Engineering Works Limited has announced a proposal to increase its Employee Stock Option (ESOP) pool from 4.40 crore to 7.35 crore options. This amendment to the “Lloyds Steels Industries Limited – Employee Stock Option Plan – 2021” requires approval from the company’s members via postal ballot and necessary regulatory clearances. The details of the proposed increase are outlined in Annexure-I, ensuring transparency for stakeholders.
ESOP Pool Expansion Planned
Lloyds Engineering Works Limited is set to propose an expansion of its Employee Stock Option Plan (ESOP). The Nomination and Remuneration Committee, along with the Board of Directors, has recommended increasing the total ESOP pool from the current 4,40,00,000 options to 7,35,00,000 options. This significant increase is part of an amendment to the existing scheme, “Lloyds Steels Industries Limited – Employee Stock Option Plan – 2021”.
Shareholder and Regulatory Approval Required
The proposed increase in the ESOP pool is subject to the approval of the company’s shareholders through a postal ballot. Additionally, appropriate approvals from relevant regulatory authorities will be sought. The company has provided comprehensive details regarding this proposed amendment as per SEBI guidelines in an attached annexure.
Details of the Proposed Amendment
The amendment aims to increase the number of shares covered by the ESOP from 4,40,00,000 to 7,35,00,000. While no fresh grants are being made at present, shareholders’ approval will be sought for this amendment to the ESOP Pool Clause within the existing plan. The pricing formula for future option grants will be based on the market price, specifically the latest closing price on a recognized stock exchange one day prior to the committee meeting where grants are approved. The exercise period for vested options will be 3 years from the date of vesting.
Source: BSE
