Samvardhana Motherson International Limited has submitted with exchange regarding approval of Employee Stock Option Scheme in the Board Meeting held on June 19, 2025 and recommended for ....
Awaiting price reaction for this filing.
On June 19, 2025, the Board of Samvardhana Motherson International Limited approved the formulation of an Employee Stock Option Scheme called 'ESOP Scheme 2025', subject to shareholder approval. The scheme proposes up to 6.30 crore option grants (pre-bonus), equivalent to 9.45 crore grants post the proposed bonus issue, each convertible into one equity share of ₹1 face value. The current paid-up equity capital stands at about 703.63 crore shares, expected to rise to about 1055.44 crore shares after the bonus issue whose Postal Ballot results are due by July 7, 2025. The exercise price will be fixed by the Nomination and Remuneration Committee at up to a 15% discount to the market price on the grant date, with a minimum vesting period of 1 year and maximum of 5 years. Each employee can be granted up to 5 lakh options (7.5 lakh post-bonus), and shares will be acquired through secondary market or primary issuance as needed.
This ESOP scheme, once approved by shareholders, could result in equity dilution of up to roughly 0.9% on a fully diluted post-bonus basis (9.45 crore options vs ~1055 crore shares). The 15% discount on the exercise price makes it moderately attractive for employees but is a modest cost to existing shareholders in terms of value transfer.