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 shareholder approval.
MOTHERSON · price
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Samvardhana Motherson International Limited (Motherson) has approved a new Employee Stock Option Scheme called 'ESOP Scheme 2025' at its board meeting on June 19, 2025, subject to shareholder approval. The scheme allows for up to 6.30 crore option grants (pre-bonus issue), which is equivalent to 9.45 crore grants after the proposed bonus issue. The exercise price will be set at up to a 15% discount to the market price on the grant date, with a minimum vesting period of 1 year and a maximum of 5 years. Options must be exercised within 3 years of vesting. The maximum grant per employee is capped at 5 lakh options (pre-bonus) or 7.5 lakh (post-bonus). The current paid-up equity capital is about 703.63 crore shares, which will rise to about 1,055.44 crore shares post the bonus issue (results expected by July 7, 2025).
The ESOP scheme will lead to equity dilution when options are exercised, but shares can be acquired via secondary market purchases to minimize dilution. For shareholders, this is a standard employee retention and incentive measure, and the proposal is now subject to shareholder approval.