Samvardhana Motherson International Limited has informed the Exchange regarding Notice of Postal Ballot
MOTHERSON · price
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Samvardhana Motherson International (MOTHERSON) has sent out a Postal Ballot Notice to shareholders seeking approval for 5 special resolutions related to a new Employee Stock Option Plan called 'ESOP 2025'. The scheme proposes to grant up to 9,45,00,000 (9.45 crore) stock options, exercisable into an equal number of equity shares of Re. 1 face value, which is about 0.90% of the company's post-bonus paid-up equity capital. The options will be implemented through a new irrevocable employee welfare trust called 'Motherson ESOP Trust', which can acquire shares via secondary market purchases and/or primary issuance. The company also seeks approval to extend ESOP benefits to employees of subsidiary and group companies, and to provide up to 5% of paid-up capital and free reserves as loan or guarantee to the trust. Voting is open from July 24, 2025 to August 22, 2025, with results expected by August 25, 2025. This follows the recently approved 1:2 bonus issue.
If approved, the ESOP could result in mild equity dilution (about 0.90% if primary issuance is used) or use cash reserves if shares are bought from the market, potentially supporting share price. The scheme is aimed at attracting and retaining talent as the company enters its next growth phase, which is generally seen as a positive long-term signal for shareholders.