Vedanta Iron & Steel has issued a postal ballot notice seeking shareholder approval for its Employee Stock Option Plan 2026 (VISL ESOP 2026), Employee Share Purchase Plan 2026 (VISL ESPP 2026), and various material related party transactions (RPTs). The e-voting period runs from September 1, 2026, at 9:00 am to September 30, 2026, at 5:00 pm.

The company, which became an independent listed entity following a demerger from Vedanta Limited effective May 1, 2026, is also seeking approval for the appointment of M/s S.R. Batliboi & Co. LLP as statutory auditors for FY27.

Employee Benefit Plans

The VISL ESOP 2026 proposes a pool of up to 16,62,04,184 employee stock options, representing 4.25% of the total paid-up share capital. Additionally, the VISL ESPP 2026 proposes a pool of 2,93,30,150 shares, representing 0.75% of the capital. Both plans will be implemented through the 'VISL ESOS Trust' via secondary acquisition of shares from the market, ensuring no additional equity dilution for existing shareholders.

The resolutions also seek approval to extend these plans to employees of the holding company and subsidiary companies. The company may provide interest-free loans to the trust for share purchases, capped at 5% of the aggregate paid-up share capital and free reserves. Vesting for ESOPs is linked to individual and company performance parameters over a minimum of one year and maximum of five years.

Related Party Transactions

Shareholders are asked to approve RPTs between the company and its subsidiaries, including Sesa Resources Limited, Sesa Mining Corporation Limited, ESL Steel Limited, Bloom Fountain Limited, Western Cluster Limited, and Desai Cement Company Private Limited. These transactions involve the sale and purchase of goods, services, and fixed assets, as well as cost reimbursements.

The notice states that because the company’s turnover was nil in the immediately preceding financial year (FY26 pre-demerger), these routine operational transactions are technically classified as material under SEBI Listing Regulations. However, the board notes that considering the consolidated revenue from operations of ₹13,339 crore for FY26, these RPTs are not materially significant relative to the eventual size of operations.

Auditor Appointment

M/s S.R. Batliboi & Co. LLP has been appointed as statutory auditors to fill a casual vacancy arising from the resignation of previous auditors M/s Haribhakti & Co. LLP. The proposed fee for FY27 is ₹2.45 crore exclusive of taxes, reflecting the revised scope of audit services for the standalone listed entity.

Vedanta Iron & Steel Limited disclosed that its subsidiary, ESL Steel Limited, received a demand-cum-show cause notice from the Principal Commissioner of Central Goods and Services Tax & Central Excise, Ranchi, on August 27, 2026.

The notice proposes a recovery of ₹39.58 crore, alleging wrongful availment and utilization of Input Tax Credit (ITC) related to credit notes during FY20-21 to FY22-23.

Notice Details

The tax department issued the notice at approximately 3:24 pm on August 27, 2026. It follows an earlier intimation under Form GST DRC-01A dated August 13, 2026. The company must submit its response within the prescribed timeline.

The total amount includes applicable interest and penalty alongside the principal tax demands.

Company Response

ESL Steel is examining the notice and intends to take appropriate legal steps in accordance with applicable laws. Vedanta Iron & Steel stated it does not envisage any significant financial or operational impact from this development.

This disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.