Prataap Snacks has granted 50,906 Employee Stock Appreciation Rights (ESARs) to eligible employees under its Prataap Employees Stock Appreciation Rights Plan 2018. The Nomination and Remuneration Committee approved the grant during its meeting on August 1, 2026, continuing the firm’s equity-based compensation strategy designed to align employee interests with long-term shareholder value. This move reinforces retention efforts by offering financial upside linked to the company’s stock performance.

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with Schedule III thereof. The scheme complies with the SEBI (Share Based Employee Benefits) Regulations, 2021, and follows the framework outlined in SEBI Circular No. HO/49/14/14(7)2025-CFDPOD2/I/3762/2026 dated January 30, 2026. Company Secretary Sanjay Chourey confirmed that the requisite details have been submitted to both the National Stock Exchange of India Limited and BSE Limited for record purposes.

Key Details of the ESAR Grant

The financial and structural parameters of the newly granted ESARs are outlined below:

Upon exercise, the number of shares allotted will be determined by the formula: (Appreciation per ESAR x Number of ESARs exercised) / Market Price with reference to the date of exercise. Grantees are required to pay the face value of the shares prevailing at the time of allotment.

Plan Status and Historical Adjustments

As of the grant date, the total number of ESARs vested under the plan stands at 4,40,701. Of these, 1,41,329 ESARs have been exercised, resulting in the allotment of 50,935 shares. The company realized proceeds of Rs. 2,54,675 from these exercises. Conversely, 3,17,725 ESARs have lapsed due to non-exercise within the stipulated timeframes.

The Nomination and Remuneration Committee has previously adjusted exercise periods to benefit grantees. In a meeting on August 2, 2023, the committee extended the exercise period by two years for 3,47,000 ESARs granted on August 9, 2019, covering vesting dates up to August 8, 2025, and August 8, 2026. Most recently, on August 1, 2026, the committee extended the exercise period by two years for 1,02,716 ESARs granted on August 19, 2022, pushing the first vesting deadline to August 18, 2028.

What the Numbers Show

The dilution impact of the plan remains contained, with diluted earnings per share calculated at Rs. 1.03 following the issue of equity shares upon exercise. The significant number of lapsed ESARs (3,17,725) suggests that a portion of the initial pool did not meet vesting conditions or was not exercised within the window, indicating strict adherence to performance or tenure-based criteria. The recent extensions granted by the committee reflect a flexible approach to retention, allowing employees additional time to realize the value of their awards amidst market volatility.

Prataap Snacks has formally submitted applications to the National Stock Exchange of India Limited and BSE Limited for the reclassification of six individuals from the "Promoter" category to the "Public" category. This procedural step, disclosed on August 4, 2026, follows the company's earlier intimation on August 1, 2026, regarding requests received from these shareholders. The move aims to adjust the company's shareholding structure in compliance with public shareholding norms under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The application pertains to Regulation 31A read with Regulation 30 of the SEBI LODR. The reclassification does not involve any sale or transfer of shares but changes how the holdings are categorized for regulatory compliance. Sanjay Chourey, Company Secretary and Compliance Officer at Prataap Snacks Limited, signed the intimation letter submitted to the exchanges.

Shareholder Details

The applications cover six shareholders who have requested to be treated as part of the public category. Three of these individuals currently hold nil shares, while the remaining three hold a combined total of 5,11,136 shares, representing 2.14% of the paid-up capital.

Regulatory Context

Regulation 31A governs the classification of shareholders into promoter and public categories. Reclassification is permitted when promoters wish to be treated as part of the public category for regulatory compliance purposes. The company stated it would take necessary steps within the time and manner required by the regulations. The intimation is also available on the company's website, www.yellowdiamond.in .

What This Means for Investors

The reclassification will increase the reported public shareholding of Prataap Snacks Limited by approximately 2.14%. This may help the company maintain or improve its compliance with minimum public shareholding requirements mandated by SEBI. Investors should note that this is a regulatory reclassification and does not involve any change in beneficial ownership or control of the company.