Vardhman Special Steels has successfully allotted 1,23,750 equity shares to eligible employees under its Employee Stock Option Plans (ESOP), marking a significant milestone in the company's employee engagement initiatives. The allotment was approved by the Committee of Directors (ESOP Plan) during their meeting held on January 08, 2026.

ESOP Allotment Details

The comprehensive allotment encompasses shares from two distinct ESOP schemes operated by the company. The details of the share allotment are structured as follows:

ESOP Scheme Framework

The allotment draws from two established Employee Stock Option Plans that demonstrate the company's long-term commitment to employee participation:

• Vardhman Special Steels Limited Employee Stock Option Plan, 2016
• Vardhman Special Steels Limited Employee Stock Option Plan, 2020

Eligible employees who exercised their stock options under these schemes received the allocated shares. The inclusion of 61,875 bonus shares in a 1:1 ratio alongside the ESOP shares enhances the value proposition for participating employees.

Share Characteristics and Rights

The newly allotted equity shares carry full rights and privileges equivalent to existing shareholders. These shares will rank pari passu with the existing equity shares of the company in all respects, ensuring equal treatment in terms of dividend rights, voting rights, and other shareholder benefits.

Corporate Governance and Compliance

The allotment process was conducted in accordance with regulatory requirements, with formal notifications sent to both BSE Limited (Scrip Code: 534392) and National Stock Exchange of India Ltd (Scrip Code: VSSL). The company maintains transparency in its ESOP operations through proper documentation and timely regulatory disclosures, reinforcing its commitment to corporate governance standards.

Vardhman Special Steels Limited has officially announced its investment of ₹475 crore to establish a new steel forging and machining manufacturing facility in Ludhiana, Punjab. The announcement was made through a regulatory filing on December 23, marking a significant expansion into value-added automotive components with technical expertise from Aichi Steel Corporation.

Investment and Partnership Details

The proposed facility represents a strategic forward integration of the company's existing steel-making operations. Key parameters of this expansion include:

Strategic Forward Integration

The forging unit marks a strategic forward integration of Vardhman Special Steels' existing steel-making operations. This expansion enables the company to offer a comprehensive, one-stop solution to automotive OEMs, spanning steel production through to forged components. The integrated operating structure is expected to deliver higher quality consistency, improved supply reliability and closer customer alignment, supported by Japanese quality standards across the manufacturing value chain.

Management Commentary

Commenting on the expansion, Mr. Sachit Jain, Chairman Managing Director, stated that the company has consistently evaluated venturing into forgings with partner Aichi Steel Corporation, which has the largest forging capacity in the automotive domain with unique know-how and technologies in Japan. He emphasized that with rising customer demand, market visibility and internal capabilities now aligned, the company is proceeding with setting up the forging and machining unit in Ludhiana.

Market Positioning and Growth Strategy

The investment aims to strengthen the company's position within the automotive supply chain by expanding its value-added product portfolio and increasing participation across critical automotive components. The new facility is expected to deepen customer relationships and support long-term growth opportunities. Vardhman Special Steels currently serves renowned customers globally, including Toyota, Maruti, Hyundai, Hero MotoCorp, Caterpillar, Hino Motors and Bajaj, among others.