Pitti Engineering Limited disclosed the second grant of employee stock options under its ESOP Scheme 2024 through a regulatory filing to BSE Limited and National Stock Exchange of India Limited.

The Board of Directors noted the grant of 5,77,500 employee stock options approved by the Nomination and Remuneration Committee at its meeting held on 22nd October 2026. The exercise price was set at ₹736.72 per option, allocated to eligible employees of the Company.

Key Grant Details

  • Total Options Granted: 5,77,500 employee stock options
  • Exercise Price: ₹736.72 per option
  • Scheme Name: Pitti Engineering Limited Employees Stock Option Scheme 2024 (Pitti ESOP Scheme 2024)
  • Shareholder Approved Limit: 13,00,000 options
  • Compliance: The scheme complies with SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021

Equity Share Details

Each option carries the right to apply for and be allotted one equity share of face value ₹5 each of the Company, totaling 5,77,500 equity shares.

Pricing Rationale

The Nomination and Remuneration Committee approved the exercise price of ₹736.72, maintaining consistency with the first grant's exercise price. The Committee considered this appropriate due to broadly comparable market conditions.

Market Price Reference: The exercise price represents a discount of 23.03% to the closing market price of ₹957.20 per equity share on the National Stock Exchange of India Limited recorded on Wednesday, 21st October 2026 (the previous trading day).

Scheme Implementation

The scheme will be implemented and administered through a trust route where the trust can either acquire equity shares through secondary acquisition or the Company will issue shares directly to the Trust.

Vesting Schedule

The second grant includes two types of options with the following vesting schedule:

Time Based Options (TBO) - 75% of Total Grants:

  • End of Year 1: Nil
  • End of Year 2: Nil
  • End of Year 3: 15%
  • End of Year 4: 15%
  • End of Year 5: 15%
  • End of Year 6: 15%
  • End of Year 7: 20%
  • End of Year 8: 20%

Performance Based Options (PBO) - 25% of Total Grants:

  • End of Year 1: Nil
  • End of Year 2: 25%
  • End of Year 3: 25%
  • End of Year 4: 10%
  • End of Year 5: 10%
  • End of Year 6: 10%
  • End of Year 7: 10%
  • End of Year 8: 10%

Vesting is subject to achievement of performance conditions specified in the grant letter. There is a minimum period of one year between grant of options and vesting of options.

Exercise Period

Option grantees are entitled to exercise options from the first date of vesting until the expiry of 5 years from the vesting of the final tranche of granted options.

Previous Grant Update

The disclosure notes that 80,000 Stock Options under the first grant approved by the Nomination and Remuneration Committee on 13th March 2026 stand cancelled as of the date due to the exit of respective employees prior to completion of the vesting period.

Financial Impact

Diluted earnings per share impact is noted as not applicable as this disclosure pertains only to the grant of options under the Scheme. Financial impact not quantified in the disclosure.