Azad Engineering Grants 80,000 Employee Stock Options Under ESOP 2024 Scheme
Azad Engineering Limited's NRC approved the grant of 80,000 employee stock options under the Azad ESOP Scheme 2024 on May 12, 2026, at an exercise price of ₹1,050/- per option, covering 80,000 equity shares of face value ₹2/- each. The grant falls within the shareholders' approved limit of 11,82,259 options, with vesting commencing one year from the date of grant and exercise permitted on April 1 or September 1 annually, in compliance with SEBI (SBEB) Regulations, 2021.
*this image is generated using AI for illustrative purposes only.
Azad Engineering Limited's Nomination and Remuneration Committee (NRC) of the Board of Directors convened on May 12, 2026, and approved the grant of 80,000 (Eighty Thousand) employee stock options under the 'Azad ESOP Scheme 2024' (ESOP 2024). The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and in accordance with SEBI Master Circular No. SEBI/HO/49/14/14(7)2025-CFD-POD2/1/3762/2026 dated January 30, 2026. The NRC meeting commenced at 3:36 P.M. (IST) and concluded at 4:02 P.M. (IST).
ESOP Grant Details
The grant was made within the shareholders' approved limit of 11,82,259 (Eleven Lakh Eighty-Two Thousand Two Hundred Fifty-Nine) options, as authorised at the Extra-Ordinary General Meeting held on January 28, 2025. The key parameters of the grant are presented below:
| Parameter: | Details |
|---|---|
| Effective Date of Grant: | May 12, 2026 |
| Number of Options Granted: | 80,000 (Eighty Thousand) |
| Shareholders' Approved Limit: | 11,82,259 options |
| Equity Shares Covered: | 80,000 equity shares of face value ₹2/- each |
| Exercise Price: | ₹1,050/- per option |
| Scheme Compliance: | SEBI (SBEB) Regulations, 2021 |
Vesting and Exercise Terms
The granted options are subject to a structured vesting and exercise schedule as determined by the NRC. Key terms include:
- Vesting Commencement: Options will start vesting after a period of one (1) year from the date of grant.
- Exercise Window: Vested options may be exercised in one or more tranches on April 1 or September 1 (or such other date as the NRC may permit), within a period of one year from the date of vesting or such extended period as the NRC may permit.
- Lock-in: Equity shares arising out of the exercise of vested options shall not be locked in.
- Eligibility: The grant of options is based upon the eligibility criteria mentioned in ESOP 2024.
Scheme Administration
The ESOP 2024 is administered and implemented by the NRC of the Board of Directors in accordance with the scheme's terms. Upon vesting, each option entitles the holder to acquire an equal number of equity shares, subject to payment of the exercise price and applicable taxes as per the terms and conditions of ESOP 2024. The vesting schedule and vesting conditions are determined by the NRC at the time of grant. The scheme is compliant with SEBI (Share Based Employee Benefits) Regulations, 2021.
Historical Stock Returns for Azad Engineering
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +3.05% | -0.54% | +25.34% | +35.06% | +26.21% | +222.14% |
How might the exercise price of ₹1,050 per option compare to Azad Engineering's market price at the time employees begin vesting in May 2027, and what does this imply for employee retention incentives?
Given that only 80,000 options have been granted out of the 11,82,259 shareholder-approved limit, does Azad Engineering plan additional ESOP tranches in the near future to attract or retain key talent?
How could the potential dilution from the full utilization of the 11,82,259 ESOP limit impact existing shareholders' equity and earnings per share over the coming years?
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