Embassy Developments Limited has approved the grant of 2,72,935 Stock Options (SOs) and 1,65,887 Performance Stock Units (PSUs) to eligible employees under its Employee Stock Option Scheme 2025. The Nomination and Remuneration Committee of embassy developments approved the grants at its meeting held on May 20, 2026.

Grant Details

The grants have been made in accordance with the Embassy Developments Limited Employee Stock Option Scheme – 2025 (Embassy ESOS 2025). The scheme is compliant with the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021, and has received necessary in-principle approvals from the National Stock Exchange of India Limited (NSE) and BSE Limited (BSE).

Pricing and Vesting

The SOs are priced at INR 111.51 per option, while the PSUs are priced at INR 2 per unit, which represents the face value of the equity shares. Each SO is convertible into one equity share of face value INR 2. The PSUs are convertible into a number of equity shares determined based on the achievement of performance parameters.

The vested SOs and PSUs can be exercised within a period of five years from the respective vesting date or seven years from the respective Grant Date, whichever is earlier. The SOs have a vesting period of four years, vesting uniformly at a rate of 25% at the end of each year from the grant date. The PSUs will vest subject to the achievement of prescribed performance milestones.

Embassy Developments Limited announced that the Hon'ble High Court of Karnataka has set aside the Karnataka Industrial Areas Development Board's (KIADB) earlier order directing the resumption of approximately 78 acres of land at Kadugodi Industrial Area, Bengaluru. The land is held by Embassy East Business Park Limited (EEBPL), a wholly owned subsidiary of the Company. The disclosure was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Background of the Dispute

The legal proceedings stem from a KIADB order dated March 16, 2026, which had directed the resumption of the land held by EEBPL at Kadugodi Industrial Area. In response to the KIADB order, EEBPL filed a writ petition before the Karnataka High Court challenging the directive. The Karnataka High Court allowed the writ petition on May 12, 2026, setting aside the KIADB order and rendering it ineffective.

High Court Ruling and Implications

As a direct consequence of the ruling, EEBPL continues to hold and retain possession of the said land. The key details of the development are summarised below:

The Kadugodi land remains strategically important to the Company's long-term development plans in the East Bengaluru development corridor and micro-market. The order enables EEBPL to continue progressing the development of its business park. This judgement represents another significant favourable legal outcome for the Company within a period of two weeks, following the order dated May 4, 2026, by the Hon'ble National Company Law Appellate Tribunal (NCLAT) quashing insolvency proceedings against Embassy Developments.

Management Commentary

Commenting on the development, Aditya Virwani, Managing Director, Embassy Developments Limited, said, "The Karnataka High Court's order is an important affirmation of EEBPL's lawful rights over land that has long been central to our East Bengaluru development plans. This is an important victory for the Company and we are pleased that, with this order, we can continue to develop the land. During this challenging time, we remained steadfast in our commitment to transparency, governance and compliance."

Disclosure and Governance

Embassy Developments noted that the formal signed copy of the court order is still awaited, and the disclosure has been made based on the pronouncement by the Hon'ble Court. The Company stated that this is in line with its commitment to high standards of governance and timely disclosure practices. According to the Company's regulatory filing, no penalties, restrictions, or sanctions were imposed pursuant to the proceedings, and no aberrations or non-compliances were identified by the authority in the communication.

Source: None/Company/INE069I01010/040a304eb56440a0.pdf