Cineline India Limited has intimated the stock exchanges under SEBI Listing Regulations (Regulation 30) about the approval of a new Employee Stock Option Scheme.

Key Quantitative Figures

The scheme authorizes the grant of not exceeding 8,00,000 (Eight Lakh) employee stock options. Each option is exercisable into one equity share of face value ₹5 each, fully paid-up. The maximum potential equity dilution is therefore 8,00,000 shares.

Conditions and Approvals

The implementation of the ESOP 2026 is subject to the approval of members (shareholders) in the ensuing general meeting of the Company. It is also subject to other necessary regulatory/statutory approvals.

Administration and Governance

The Nomination and Remuneration Committee (NRC) recommended the scheme and will act as the Compensation Committee for its administration. This committee will have the authority to interpret the scheme, determine eligible employees, decide the number of options per grant, and set the exercise price. Its determinations will be final and binding.

Scheme Details and Terms

  • Eligible Employees: The scheme is applicable to employees of the Company, its subsidiary, joint ventures, associate companies in India or abroad, and their eligible employees or directors. The specific employees and eligibility criteria will be determined by the NRC based on management recommendations.
  • Grant of Options: Options will be granted in one or more tranches.
  • Exercise Price: The exercise price for any option will be determined by the NRC and will not be less than the face value of the equity share (₹5) and not more than the closing market price on the previous day of the grant date. The price can be varied for corporate actions like rights issues, mergers, or stock splits.
  • Vesting Period: The minimum vesting period is one (1) year, and the maximum vesting period is five (5) years from the date of grant.
  • Exercise Period: The exercise period will commence from the date of vesting and will expire on the completion of three (3) years from the respective vesting date, or a shorter period as prescribed by the committee.
  • Lock-in: Shares obtained upon exercise of vested options will not be subject to any lock-in period from the date of transfer.

Current Status and Future Disclosures

No options have been granted, vested, exercised, or lapsed at this stage. The company will issue necessary disclosures and intimations under applicable law, including Regulation 30(7) of SEBI Listing Regulations, as it progresses with the ESOP.

Financial Impact

Financial impact is not quantified in the disclosure, as the grant of options is pending shareholder and other approvals.