Kalyan Jewellers India Limited has taken a significant step in enhancing employee engagement by allotting equity shares under its Employee Stock Option Plan (ESOP). The company recently announced the allotment of 1,10,071 equity shares to eligible employees, demonstrating its commitment to aligning employee interests with those of the company.

Key Details of the Allotment

Implications and Next Steps

Pari Passu Status

The newly allotted shares will rank equally with the existing equity shares of the company, ensuring equal rights for the employee shareholders.

Listing Process

Kalyan Jewellers is currently in the process of completing the necessary formalities to list these allotted shares on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).

Regulatory Compliance

The allotment was made in accordance with the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021.

No Lock-in Period

The company confirmed that there is no lock-in period applicable to these allotted shares.

Corporate Governance and Transparency

The allotment decision was made by the Nomination Remuneration Committee of the Board of Directors, highlighting the company's adherence to good corporate governance practices. By promptly disclosing this information under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Kalyan Jewellers demonstrates its commitment to transparency and keeping shareholders informed.

This move by Kalyan Jewellers not only incentivizes its employees but also potentially aligns their interests more closely with the company's long-term success. As the company continues to grow in the competitive jewelry market, such initiatives may play a crucial role in attracting and retaining talent while fostering a sense of ownership among its workforce.

Kalyan Jewellers India Limited has initiated a postal ballot to seek shareholder approval for a significant amendment to its Employee Stock Option Plan 2020 (ESOP 2020). The company aims to double the number of stock options available under the plan, potentially impacting employee compensation and retention strategies.

Key Details of the Proposed Amendment

• Increase in Stock Options: The company proposes to increase the total number of employee stock options from 30 lakh to 60 lakh.
• Conversion Ratio: Each option, when exercised, will be convertible into one equity share with a face value of Rs. 10.00.
• Voting Period: E-voting will be open from November 15, 2025, to December 14, 2025.
• Results Declaration: The outcome of the postal ballot is scheduled to be announced by December 16, 2025.
• Eligibility Cut-off Date: November 8, 2025, has been set as the cut-off date for determining voting eligibility.

Rationale and Implementation

The amendment is designed to broaden the opportunity for more employees to participate in the company's growth. This move aligns with Kalyan Jewellers' strategy to attract, retain, and motivate key talent across the organization and its subsidiaries.

Key Features of the Amended ESOP 2020

Approval Process

The amendment requires approval through a special resolution. The company has engaged National Securities Depository Limited (NSDL) to facilitate the e-voting process for shareholders.

Impact and Outlook

This expansion of the ESOP pool could potentially enhance Kalyan Jewellers' ability to align employee interests with organizational objectives. By offering equity-based compensation, the company aims to foster a sense of ownership among its workforce, which may contribute to long-term growth and performance.

Shareholders are advised to review the detailed postal ballot notice and consider the potential dilution and long-term benefits before casting their votes on this significant amendment to the company's employee stock option plan.