NewsMastek Limited Grants 6,00,000 Stock Options to Eligible Employees Under ESOP Plans VI and VIIMastek Limited Grants 6,00,000 Stock Options to Eligible Employees Under ESOP Plans VI and VII
Mastek Limited has granted 6,00,000 stock options to eligible employees under ESOP Plans VI and VII, effective April 1, 2026, with an exercise price of Rs. 1,000 per option. The options feature a performance-linked vesting schedule over 3-5 years and can be exercised within 7 years of vesting. Each option converts to one equity share with Rs. 5 face value, subject to meeting performance conditions set by the Nomination and Remuneration Committee.
*this image is generated using AI for illustrative purposes only.
Mastek Limited has announced the grant of 6,00,000 stock options to eligible employees under its Employee Stock Options Plans VI and VII. The Nomination and Remuneration Committee approved this grant pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and the SEBI (Share Based Employee Benefits) Regulations, 2021.
Grant Details and Pricing
The stock options grant encompasses significant details for employee compensation. The company has structured the offering with specific pricing and share parameters.
| Parameter | Details |
|---|---|
| Total Options Granted | 6,00,000 (Six Lakhs) |
| Exercise Price | Rs. 1,000 per Option |
| Face Value per Share | Rs. 5 |
| Effective Date | April 1, 2026 |
| Applicable Plans | ESOP Plan VI and Plan VII |
Vesting Schedule and Performance Conditions
The options follow a performance-linked vesting structure spanning multiple years. The vesting schedule allows for up to 100% of the options to vest at the end of the 3rd year from the grant date, subject to achieving performance conditions defined by the Nomination and Remuneration Committee.
If performance conditions are not met at the first vesting date, the balance unvested options will have additional opportunities to vest:
- Second vesting opportunity: 4th year from grant date
- Third vesting opportunity: 5th year from grant date
- Lapse condition: All options remaining unvested after the 3rd vesting date shall lapse
Exercise Period and Regulatory Compliance
The exercise framework provides flexibility for option holders while maintaining regulatory compliance. Once vested, employees have a maximum period of 7 years from the date of vesting to exercise their options.
| Compliance Aspect | Status |
|---|---|
| SEBI Regulations Compliance | Yes |
| Share Type | Equity shares, fully paid up |
| Administration | Nomination and Remuneration Committee |
| Regulatory Framework | SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 |
The stock options are governed under ESOP Plan VI and Plan VII, which are administered and implemented by the company's Nomination and Remuneration Committee. This grant represents part of Mastek's employee retention and incentive strategy, linking employee rewards to company performance through the structured vesting conditions.
Historical Stock Returns for Mastek
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +3.08% | +4.01% | -4.82% | -31.71% | -28.89% | +18.49% |
What specific performance metrics will Mastek use to determine whether employees meet the vesting conditions over the next three years?
How might this significant ESOP grant impact Mastek's earnings per share dilution when employees begin exercising options from 2029 onwards?
Will Mastek need to expand its existing ESOP pool or seek shareholder approval for additional share allocations to accommodate future grants?
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