Kirloskar Oil Engines Allots Additional 9,185 Shares Under ESOP 2019 Scheme

Kirloskar Oil Engines Limited has continued its employee incentivization program with another round of equity share allotments under its Employee Stock Option Plan. The company's Stakeholders Relationship Committee approved the latest allotment on January 5, 2026, further expanding the company's share capital structure.

Latest ESOP Allotment Details

The Stakeholders Relationship Committee, in its meeting held on January 5, 2026, approved the allotment of 9,185 fully paid-up equity shares, each with a face value of ₹2.00. This allotment was executed under the 'Kirloskar Oil Engines Limited – Employee Stock Option Plan 2019' (KOEL ESOP 2019). The committee meeting commenced at 3:00 PM and concluded at 3:38 PM.

Updated Share Capital Structure

The recent allotment has resulted in further changes to KOEL's share capital composition:

Share Capital Category:	Before Latest Allotment	After Latest Allotment
Issued and Subscribed Capital:	₹29,06,63,758	₹29,06,82,128
Paid-up Capital:	₹29,06,62,828	₹29,06,81,198
Total Equity Shares (Issued):	14,53,31,879	14,53,41,064
Total Equity Shares (Paid-up):	14,53,31,414	14,53,40,599

Cumulative Impact of ESOP Allotments

With this latest development, Kirloskar Oil Engines has now completed multiple rounds of ESOP allotments. The company previously allotted 36,279 shares in November, and this recent allotment of 9,185 shares demonstrates the ongoing implementation of its employee stock option program.

Strategic Benefits of ESOP Implementation

The continued execution of the ESOP program serves several strategic objectives:

Benefit Area:	Impact
Employee Alignment:	Links employee interests with shareholder value
Talent Retention:	Provides long-term incentives for key personnel
Capital Enhancement:	Gradual increase in company's equity base
Regulatory Compliance:	Maintains transparency through timely disclosures

Regulatory Compliance and Transparency

Kirloskar Oil Engines has maintained its commitment to regulatory compliance by promptly informing both BSE (Scrip Code: 533293) and NSE (Scrip Code: KIRLOSENG) about this development. The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, demonstrating the company's adherence to transparency standards.

Conclusion

The systematic implementation of the ESOP 2019 scheme reflects Kirloskar Oil Engines' strategic approach to employee engagement and capital structure management. These regular allotments under the employee stock option plan continue to strengthen the alignment between employee interests and company performance while gradually enhancing the equity base.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+2.20%	-8.26%	+0.53%	+25.78%	+28.46%	+781.42%

Kirloskar Oil Engines Limited (KOEL) has announced a significant corporate restructuring, transferring its Business to Customer (B2C) segment to its wholly-owned subsidiary, La-Gajjar Machineries Private Limited (LGM), through a slump sale. This strategic move, approved by KOEL's Board of Directors on October 10, 2025, is set to take effect from October 11, 2025.

Transaction Details

The transfer involves KOEL's Water Management Solutions (WMS) - Domestic & Exports Business, collectively known as the B2C Segment. As consideration for this transfer, LGM will issue 10,65,150 equity shares with a face value of INR 10 each to KOEL on a private placement basis.

Financial Impact

The B2C segment being transferred contributed significantly to KOEL's financial performance in the fiscal year 2024-25:

Metric	Amount (INR Crore)	Percentage of Total
Revenue from Operations	592.61	11.59%
Total Income	592.93	11.52%
Turnover	591.25	11.66%
Net Worth	(11.95)	0.40%

Strategic Rationale

This reorganization is a continuation of KOEL's three-year strategy to separate its B2C and B2B operations. The company aims to:

Drive operational efficiencies
Streamline go-to-market channels
Optimize resource allocation
Create a simplified corporate structure

KOEL expects this move to position both entities for accelerated and sustainable long-term growth, enhancing their product portfolios and core capabilities.

Implications for Shareholders

While this is a related party transaction between KOEL and its wholly-owned subsidiary, the company has stated that the deal is conducted on an arm's length basis. There will be no change in the shareholding pattern of KOEL as a result of this transaction.

Market Outlook

This strategic integration is expected to sharpen KOEL's focus on its B2C segment operations, which the company views as a key pillar of its long-term growth strategy. By creating a more agile and simplified organizational structure, KOEL aims to strengthen its market leadership, accelerate product innovation, and deliver enhanced value to both customers and shareholders.

As the business landscape continues to evolve, this move by Kirloskar Oil Engines Limited demonstrates the company's proactive approach to adapting its structure for future growth and efficiency. Investors and market watchers will likely keep a close eye on how this restructuring impacts the company's performance in the coming quarters.