Ion Exchange (India) Limited's board of directors has approved the adoption of a comprehensive Employee Stock Option Scheme 2026 (ESOP 2026) during its meeting held on March 18, 2026. The decision, based on recommendations from the Nomination and Remuneration Committee, marks a significant step in the company's employee retention and incentive strategy.

ESOP 2026 Scheme Details

The newly approved scheme encompasses substantial employee benefits and operational framework:

The scheme complies with SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021, and will be implemented through an irrevocable employee welfare trust to be established by the company. All equity shares under the scheme will be acquired through secondary acquisition, ensuring no dilution of existing shareholding.

Committee Reconstitution

The board approved the reconstitution of the Employee Stock Option Committee with new leadership structure:

The reconstituted committee will oversee the scheme's administration through the Ion Exchange ESOP Trust, handling all responsibilities and powers delegated by the board under applicable law.

Pricing and Exercise Framework

The scheme incorporates flexible pricing mechanisms designed to benefit eligible employees. The exercise price per option will be determined by the committee, subject to a maximum discount of up to 15% on the market price of shares on the grant date. However, the exercise price cannot fall below the face value of the company's shares.

Employees will be liable to pay the company an amount equivalent to perquisite tax payable on exercise of options, in accordance with Income Tax Act, 1961 provisions and other applicable laws at the relevant time.

Vesting and Exercise Terms

The options feature a structured vesting schedule with specific timelines:

• Minimum Vesting Period: 1 year from grant date
• Maximum Vesting Period: 4 years from grant date
• Exercise Window: Maximum 4 years from each vesting date
• Grant Flexibility: Options can be granted in one or more tranches

The shares arising from exercise of vested options will not be subject to any lock-in period from the date of transfer under the scheme.

Regulatory Compliance and Next Steps

The ESOP 2026 adoption remains subject to shareholder approval and necessary regulatory/statutory approvals. The scheme aligns with provisions of the Companies Act, 2013, and SEBI regulations, ensuring comprehensive compliance with applicable legal frameworks.

The board meeting, which commenced at 12:15 p.m. and concluded at 5:30 p.m., addressed these significant corporate governance and employee benefit initiatives as part of the company's strategic employee retention and motivation framework.

Ion Exchange (India) Limited has disclosed a significant development in its ongoing legal proceedings with Angeripalayam Common Effluent Treatment Plant Limited (ACETP). The company informed both BSE and NSE on March 6, 2026, about an appeal filed against a previously favorable arbitral award.

Appeal Filed Against Arbitral Award

ACETP has approached the Hon'ble High Court of Judicature at Madras (Commercial Division) seeking to overturn an arbitral award that had dismissed its claims against Ion Exchange. The original arbitral award, delivered by a Sole Arbitrator, had ruled in favor of Ion Exchange by rejecting ACETP's financial claims.

Regulatory Compliance and Disclosure

The disclosure was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Ion Exchange has been regularly updating stakeholders about this litigation matter, with previous intimations filed on August 28, 2023, and January 12, 2026.

Company Secretary and Compliance Officer Nikisha Solanki signed the regulatory filing, ensuring adherence to the latest SEBI circular requirements dated January 30, 2026. The company emphasized that this update continues its commitment to transparent disclosure of material litigation matters.

Current Status and Implications

The appeal represents ACETP's attempt to challenge the arbitral award that had previously protected Ion Exchange from the substantial financial claim. While the original arbitration had concluded in Ion Exchange's favor, the matter now moves to the High Court level for judicial review.

The company has indicated that no settlement discussions are currently underway, and the matter does not involve key management personnel or promoters. Ion Exchange will continue to monitor the proceedings and provide updates as required under regulatory guidelines.