Key Proposal and Quantitative Figures

The Nomination and Remuneration Committee (Designated Committee) has proposed to amend the 'Lloyds Steels Industries Limited – Employee Stock Option Plan – 2021' to increase the total number of shares under the ESOP pool.

  • The existing ESOP pool size is 4,40,00,000 (4.4 crore) options.
  • The proposed new ESOP pool size is 7,35,00,000 (7.35 crore) options.
  • This represents an increase of 2,95,00,000 options, or a 67% expansion of the pool.

Conditions and Approvals Required

The implementation of this proposal is contingent upon receiving the following approvals:

  • Approval from the company's members (shareholders) obtained through a postal ballot process.
  • Approval from appropriate regulatory authorities, as and when required.

Key Details from Annexure-I

The enclosed annexure provides the following specifics as mandated by the SEBI Master Circular:

  • SEBI (SBEB) Regulations Compliance: The Board of Directors has recommended the increase, and shareholder approval will be sought for the amendment to the ESOP plan.
  • Pricing Formula: Not applicable for the current pool increase as no new options are being granted. The annexure states that the exercise price for future grants will be based on the market price, defined as the latest closing price on a recognized stock exchange one day before the committee meeting approving the grant.
  • Exercise Period: For options that vest in the future, the exercise period will be 3 years from the date of vesting.
  • Other Details: Details such as options vested, exercised, money realized, shares issued, lapsed options, variation of terms, and diluted EPS are marked as 'Not Applicable' since the current announcement is solely for a pool increase and does not involve a fresh grant, allotment, or exercise of options.
  • Significant Terms: The significant terms of the options will be as per the amended ESOP Scheme 2021, once it is approved by the members and any requisite regulatory authorities.

Financial and Capital Structure Impact

The disclosure does not quantify a specific financial impact at this stage. The potential impact on the capital structure (dilution) will occur only when the options from the expanded pool are eventually granted to employees and subsequently exercised. The current action only increases the potential number of shares that can be issued in the future.

Contact and Company Information

The announcement was digitally signed by Rahima Shabbir Shaikh, Company Secretary and Compliance Officer (ACS: 63449), on behalf of Lloyds Engineering Works Limited. The company's Corporate Office is at A-2, 2nd Floor, Madhu Estate, Pandurang Budhkar Marg, Lower Parel (W), Mumbai – 400 013. The company's CIN is L28900MH1994PLC081235.