Rattan India Enterprises Limited has approved the grant of 54 lakh stock options under its Employee Stock Option Plan (ESOP) 2022, while simultaneously cancelling 51 lakh previously granted options. This decision was made by the Nomination and Remuneration Committee during its meeting.

ESOP Grant Details

The company's latest ESOP allocation demonstrates its commitment to employee retention and motivation through equity participation. The grant covers a substantial number of shares and follows regulatory compliance requirements.

The exercise price of ₹40.18 per share was determined based on the closing price on the National Stock Exchange of India Limited.

Option Cancellation

Concurrently with the new grant, Rattan India Enterprises cancelled 51 lakh stock options that were previously granted. These options were surrendered by eligible employees and will now be available for re-grant or re-issue under the ESOP scheme.

Regulatory Compliance

The ESOP grant maintains full compliance with securities regulations and disclosure requirements. The company has fulfilled its obligations under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

The scheme operates under the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021, ensuring proper governance and transparency in employee stock option administration.

In a notable corporate action, Rattan India Enterprises Limited has undergone a significant restructuring of its ownership structure through an internal estate planning exercise. Four family trusts have indirectly acquired substantial voting rights in the company, marking a shift in control without altering the overall promoter group shareholding.

Key Points of the Restructuring

• Acquiring Entities: Rajiv Rattan Family Trust, Rajiv Rattan Family Trust 2, Anjali Nashier Family Trust, and Anjali Nashier Family Trust 2
• Method of Acquisition: Indirect acquisition of voting rights through contribution of shares and partnership interests
• Entities Involved:
  • Nettle Constructions Private Limited
  • Arbutus Consultancy LLP

Breakdown of Acquired Voting Rights

Transaction Details

1. Nettle Constructions Private Limited:

   • Rajiv Rattan contributed 96% of Nettle's equity shares to his family trusts
   • This gives the trusts indirect control over approximately 46.89% voting rights in Rattan India Enterprises

2. Arbutus Consultancy LLP:

   • Rajiv Rattan and Anjali Nashier each contributed 48% partnership interest to their respective family trusts
   • This results in the four trusts collectively controlling 27.79% voting rights through Arbutus LLP

Impact on Shareholding

Despite the significant restructuring, it's important to note that the total promoter group shareholding in Rattan India Enterprises remains unchanged. This transaction appears to be purely an internal reorganization for estate planning purposes.

Conclusion

This restructuring represents a significant shift in the control structure of Rattan India Enterprises, although it does not change the overall promoter group holding. Such moves are often made for succession planning, tax efficiency, or other strategic reasons within family-owned businesses. Shareholders and market watchers may be keen to see if this change in voting rights control leads to any shifts in the company's strategic direction or governance in the coming months.