Aavas Financiers Unveils ESOP-2025 Plan, Sets AGM Date

1 min read     Updated on 18 Aug 2025, 10:37 AM
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Reviewed by
Ashish ThakurBy ScanX News Team
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Overview

Aavas Financiers Limited's Board of Directors has approved the ESOP-2025 plan, allowing issuance of up to 23,74,191 equity shares to eligible employees. The plan is subject to shareholder approval and offers a 5-year exercise window from each vesting date. The company has also scheduled its 15th Annual General Meeting for September 16, 2025, to be held via video conferencing at 3:30 PM IST.

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*this image is generated using AI for illustrative purposes only.

Aavas Financiers Limited, a prominent player in the financial sector, has made significant announcements regarding its employee stock option plan and upcoming annual general meeting. The company's board of directors has approved a new employee stock option plan and scheduled its annual general meeting, signaling important developments for shareholders and employees alike.

ESOP-2025 Plan Approval

The Board of Directors of Aavas Financiers Limited has given its nod to the "Aavas Financiers Limited-Equity Stock Option Plan for Employees- 2025" (ESOP-2025). This new plan allows for the issuance of up to 23,74,191 equity shares, each with a face value of Rs. 10.00. The ESOP-2025 is designed to benefit eligible employees of the company.

Key features of the ESOP-2025 plan include:

  • The options will be granted in one or more tranches, as determined by the Board of Directors, including the Nomination and Remuneration Committee.
  • The plan is subject to shareholder approval, in compliance with SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 and Section 62 of the Companies Act, 2013.
  • Employees will have a window of 5 years from each vesting date to exercise their options.

Annual General Meeting Announcement

Aavas Financiers has also set the date for its 15th Annual General Meeting (AGM). The key details are as follows:

Detail Information
Date Tuesday, September 16, 2025
Time 3:30 PM (IST)
Mode Video Conferencing (VC) / Other Audio-Visual Means (OAVM)

The company will distribute the AGM notice and the annual report for the financial year 2024-25 electronically to shareholders whose email addresses are registered with the company, its Registrar & Share Transfer Agents, or their respective Depository Participants.

Additional Information

The board meeting where these decisions were made commenced at 10:06 AM and concluded at 10:15 AM on August 18, 2025. Aavas Financiers has assured that all relevant information will be available on the company's website under the investor relations section.

These developments underscore Aavas Financiers' commitment to employee engagement through equity participation and maintaining transparent communication with its shareholders. The ESOP-2025 plan aligns with industry practices of using stock options as a tool for employee retention and motivation.

Historical Stock Returns for Aavas Financiers

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Aavas Financiers Sees Rs. 70.49 Crore Block Trade Amid Strong Q1 Performance

2 min read     Updated on 13 Aug 2025, 01:42 PM
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Reviewed by
Shriram ShekharBy ScanX News Team
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Overview

Aavas Financiers experienced a block trade of 410,354 shares at Rs. 1,717.90 per share on NSE, totaling Rs. 70.49 crores. The company reported robust Q1 results with 16% AUM growth to Rs. 207,397.00 million and 10% increase in net profit to Rs. 1,392.00 million. Spread improved to 5.11% and NIM rose to 7.48%. CVC Capital Partners became the new promoter with a 48.96% stake. The company expanded to 397 branches across 14 states and implemented tech upgrades, reducing loan sanction time to 6 days.

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*this image is generated using AI for illustrative purposes only.

Aavas Financiers Ltd. , a retail-focused affordable housing finance company, witnessed a significant block trade on the National Stock Exchange (NSE) amidst the release of its robust Q1 financial results.

Block Trade Details

Approximately 410,354 shares of Aavas Financiers changed hands in a block deal on the NSE. The transaction was executed at a price of Rs. 1,717.90 per share, amounting to a total value of Rs. 70.49 crores.

Q1 Financial Highlights

The block trade coincides with Aavas Financiers' announcement of strong financial performance for the first quarter:

Metric Performance
Assets Under Management (AUM) Grew by 16% year-over-year to Rs. 207,397.00 million
Net Profit Increased by 10% year-over-year to Rs. 1,392.00 million
Spread Improved to 5.11%, up from 5.00% in Q1 of the previous year
Net Interest Margin (NIM) Rose to 7.48%, compared to 7.31% in the same quarter last year

Asset Quality and Operational Efficiency

Aavas Financiers maintained its focus on asset quality and operational efficiency:

Metric Performance
Gross Stage 3 Assets Stood at 1.22%, a slight increase from 1.01% in Q1 of the previous year
Net Stage 3 Assets At 0.84%, up from 0.72% in the previous year
Operating Expenses to Assets Ratio Increased to 3.46% from 3.27% year-over-year, primarily due to higher ESOP costs

Strategic Developments

The company highlighted several key strategic developments:

  1. Change in Promoter: CVC Capital Partners became the new promoter, acquiring a 48.96% stake in Aavas Financiers.
  2. Technological Transformation: Implemented significant tech upgrades, reducing loan sanction turnaround time to 6 days from a previous peak of 13 days.
  3. Expansion: Increased its branch network to 397 across 14 states, focusing on contiguous growth in both core and emerging markets.

Management Commentary

Sachinder Bhinder, Managing Director & CEO of Aavas Financiers, commented on the results: "Q1 was a landmark quarter for Aavas, marking a pivotal moment in our journey. We successfully concluded the change in promoter process and are proud to welcome CVC Capital Partners as our new promoter. Their global perspective, institutional depth, and strategic insight position Aavas to accelerate into its next phase of growth and innovation."

Bhinder also highlighted the company's transition to a realization-based model for disbursement recognition, emphasizing Aavas' commitment to governance and transparency.

Market Position and Future Outlook

With a strong capital adequacy ratio of 43.20% and a robust liquidity position, Aavas Financiers appears well-positioned for sustained growth in the affordable housing finance sector. The company's focus on technology-driven operations and strategic expansion initiatives are expected to drive future performance and shareholder value.

As the affordable housing segment continues to benefit from government initiatives and improving homebuyer sentiment, Aavas Financiers aims to capitalize on these opportunities while maintaining its commitment to asset quality and profitability.

Historical Stock Returns for Aavas Financiers

1 Day5 Days1 Month6 Months1 Year5 Years
-0.05%-0.04%-12.76%-0.47%+0.53%+22.25%
Aavas Financiers
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