Sutlej Textiles & Industries has issued a postal ballot notice dated March 12, 2026, seeking shareholder approval for the introduction of Employee Stock Option Scheme 2026 (ESOP 2026). The company proposes to grant stock options to eligible employees as part of its talent retention and performance enhancement strategy.

Newspaper Advertisement Publication

On March 21, 2026, the company published newspaper advertisements in Business Standard (English - All Edition) and Dainik Bhaskar (Hindi Daily - Jhalawar edition) to inform shareholders about the dispatch of the postal ballot notice. The advertisements were published in compliance with Regulation 30 and 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Key Details of the Postal Ballot Process

The postal ballot process will be conducted entirely through remote e-voting, with no physical ballot papers being distributed. The company has appointed Mr. Rajendra Chouhan of M/s. CSM & Co., Practicing Company Secretaries, as the scrutinizer to oversee the voting process.

Employee Stock Option Scheme 2026 Features

The proposed ESOP 2026 aims to create an option pool covering eligible employees of the company. The scheme is designed to incentivize key personnel through equity participation and align their interests with long-term business objectives.

Eligibility and Vesting Terms

The scheme covers employees working exclusively with the company, whether in India or outside India, including directors (excluding promoters, promoter group members, independent directors, and those holding more than 10% shares). The vesting and exercise framework has been structured to ensure continued employee engagement:

Vesting Requirements:

• Minimum vesting period: 1 year from grant date
• Maximum vesting period: 4 years from grant date
• Exercise period: Maximum 3 years from each vesting date
• Exercise price: Current market price on grant date (not less than face value)

Special Provisions:

• In case of death or permanent incapacity, all unvested options shall vest immediately
• Vesting is subject to continued employment with the company
• Shares arising from option exercise will not have lock-in period (except insider trading restrictions)

Implementation and Governance

The Nomination and Remuneration Committee will determine option grants based on multi-criteria selection including consistent performance, anticipated contribution to strategic growth, and other relevant parameters. The scheme will be implemented directly by the company through fresh equity share issuance.

The company will follow fair value method for option valuation as prescribed under IND AS 102 and comply with relevant accounting standards. The Board retains authority to modify, suspend, or terminate the scheme subject to applicable laws and shareholder approval where required.

Voting Process and Accessibility

Shareholders can participate in the postal ballot through NSDL's e-voting platform. The notice has been sent electronically to members with registered email addresses. Individual shareholders holding shares in demat mode can vote through their depository accounts, while others can access the NSDL e-voting website directly.

The postal ballot notice and related documents are available on the company's website at www.sutlejtextiles.com and NSDL's website at www.evoting.nsdl.com . Results will be communicated to stock exchanges and published on these platforms following the conclusion of voting.

Sutlej textiles & industries Limited's Board of Directors has approved the "Sutlej Textiles and Industries Limited - Employee Stock Option Scheme 2026" (ESOP 2026) during their meeting held on March 12, 2026. The approval came based on recommendations from the Nomination and Remuneration Committee and is subject to shareholder approval under SEBI regulations.

Board Meeting Outcome

The board meeting commenced at 4:00 p.m. and concluded at approximately 4:16 p.m. on Thursday, March 12, 2026. The company has notified both BSE and NSE about the outcome in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

ESOP 2026 Scheme Details

The approved scheme provides authority to grant up to 33,43,380 stock options to eligible employees and directors. These options will be exercisable into an equal number of equity shares with a face value of Re. 1 each, fully paid-up. The Nomination and Remuneration Committee will determine the grant recipients in one or more tranches over time.

Regulatory Framework and Next Steps

The ESOP 2026 has been structured in accordance with the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. The exercise price for options will be determined by the Nomination and Remuneration Committee and communicated through individual grant letters to eligible employees and directors.

The scheme requires mandatory approval from company shareholders before implementation. Options granted under the scheme will vest not earlier than one year from the grant date, except in cases of death or permanent incapacity, and not later than four years from the grant date.

Corporate Communication

The formal communication was signed by Manoj Contractor, Company Secretary and Compliance Officer, and digitally authenticated on March 12, 2026. The company maintains its status as a Government Recognised Four Star Export House and has provided comprehensive details as required under Regulation 30 and Schedule III of SEBI Listing Regulations.