Lloyds Engineering Works Limited has announced a significant employee stock option allotment under its ESOP 2021 plan. The Nomination and Remuneration Committee of the Board of Directors approved the allotment on February 4, 2026, demonstrating the company's commitment to employee participation in its growth.

ESOP Allotment Details

The committee approved the allotment of employee stock options at two different exercise prices to eligible employees:

Financial Impact and Terms

The ESOP allotment carries significant financial implications for both the company and employees. Upon full exercise of all options, the company stands to realize substantial funds while providing employees with equity participation opportunities.

Regulatory Compliance and Structure

The Employee Stock Option Plan operates under the Lloyds Steels Industries Limited Employee Stock Option Plan - 2021, which received in-principal approval from both BSE Limited and National Stock Exchange of India Limited. The plan complies with SEBI (Share Based Employee Benefits & Sweat Equity) Regulations, 2021.

Key structural features of the options include:

• Each option converts to one equity share upon exercise
• Options vest after 1 year but within 7 years from grant date
• Unexercised options lapse after the exercise period
• All shares rank pari-passu with existing equity shares

Share Capital Impact

Following the allotment, the company's share capital structure reflects the potential for significant expansion. The first tranche allotment brings the total issued shares to 1,47,85,58,026 equity shares, while the second tranche could increase this to 1,48,00,82,086 equity shares upon full exercise.

The options carry distinctive numbers 1474202027 - 1478558026 for the first tranche and 1478558027 - 1480082086 for the second tranche, with ISIN INE093R01011. The par value remains at Re. 1 per share, maintaining consistency with the existing share structure.

Implementation Timeline

The options are scheduled to vest on March 31, 2026, providing employees with a clear timeline for potential exercise. The 3-year exercise window from the vesting date offers flexibility while ensuring timely utilization of the granted options. Currently, none of the options have been exercised, and no options have lapsed as of the allotment date.

Lloyds Engineering Works Limited has announced the termination of its Monitoring Agency Agreement with India Ratings and Research Private Limited, which was originally established to oversee the utilisation of proceeds from the company's Rights Issue. The termination notice was received on February 3, 2026, marking the end of an agreement that had been in place since November 13, 2024.

Agreement Termination Details

The monitoring agency agreement was terminated due to disagreement on commercial terms between Lloyds Engineering Works Limited and India Ratings and Research Private Limited. The original agreement was executed on November 13, 2024, specifically for monitoring the proceeds raised through the Rights Issue of shares.

Regulatory Compliance and Impact

The company has emphasised that the termination of the monitoring agency agreement does not have any material adverse impact on its operations or financial position. Lloyds Engineering Works Limited has committed to maintaining full compliance with applicable SEBI regulations relating to monitoring and reporting of utilisation of issue proceeds.

Key compliance measures include:

• Continued filings with stock exchanges
• Appointment of a new monitoring agency within statutory timelines
• Adherence to SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

Corporate Disclosure Requirements

The announcement was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has provided comprehensive details as required under the regulatory framework, including the nature of the agreement, execution date, and reasons for termination.

Next Steps

Lloyds Engineering Works Limited will proceed with appointing a new monitoring agency to ensure continued oversight of the Rights Issue proceeds utilisation. The company has assured stakeholders that it will maintain transparency and regulatory compliance throughout this transition period, with all necessary filings and disclosures being made to the relevant stock exchanges and regulatory authorities.