Walchandnagar Industries Limited Issues Shares Under Employee Stock Options Plan

Walchandnagar Industries Limited , a diversified engineering company, has recently announced the allotment of equity shares under its Employee Stock Options Plan (ESOP). This move is part of the company's strategy to align employee interests with those of shareholders and to retain top talent.

Key Details of the Allotment

• The company has allotted 30,000 equity shares to eligible employees.
• Each share has a face value of Rs. 2.
• The shares were issued at an exercise price of Rs. 60 per share.

Implications for Shareholders

While this allotment represents a minor dilution for existing shareholders, it's important to note that ESOPs are generally viewed positively by the market. They serve as a tool for:

1. Attracting and retaining skilled employees
2. Motivating staff to contribute to the company's long-term success
3. Aligning employee interests with those of shareholders

Market Impact

Investors should be aware that this type of corporate action typically has minimal immediate impact on the stock price. However, it can contribute to positive sentiment about the company's employee relations and long-term growth strategy.

Conclusion

The allotment of shares under the ESOP demonstrates Walchandnagar Industries Limited's commitment to its employees and long-term value creation. Shareholders and potential investors should view this as part of the company's broader strategy for sustainable growth and talent management.

Walchandnagar Industries Limited (WIL) has confirmed that there is no deviation in the utilization of funds raised through its preferential issue of fully convertible equity warrants, totaling Rs 247.59 crores. The company disclosed this information in a statement reviewed by its Audit Committee on November 13, 2025, for the quarter ended September 30, 2025.

Fund Raising Details

The company raised a total of Rs 247.59 crores through the preferential issue, with the following breakdown:

• Rs 216.00 crores received from investors in cash
• Rs 31.59 crores adjusted towards conversion of outstanding loans from promoter entities

Fund Utilization

As of September 30, 2025, WIL has utilized the funds as follows:

Reallocation of Funds

The company's board has approved the following reallocations:

1. Rs 4.00 crores from Capital Expenditure to Repayment of loans
2. Rs 17.00 crores from Capital Expenditure to Working Capital

Monitoring Agency

ICRA Limited has been appointed as the Monitoring Agency for overseeing the utilization of funds raised through this preferential issue.

Company Statement

G. S. Agrawal, Whole Time Director & Company Secretary of Walchandnagar Industries Limited, stated, "We confirm that there is no deviation or variation in the use of proceeds raised through the Preferential Issue from the objects stated in the Letter of Offer/EGM Notice for Preferential Issue."

About Walchandnagar Industries Limited

Walchandnagar Industries Limited is an engineering company known for its design, engineering, and high-complex precision manufacturing capabilities. With an operational legacy of more than 116 years, the company focuses on the Defence, Nuclear, and Aerospace (DNA) business sectors, which align with the Indian government's push for self-reliance in these areas.

The company's recent financial results for Q2 FY26 showed a revenue from operations of Rs 51.78 crores, compared to Rs 49.43 crores in the previous quarter. WIL reported a positive EBITDA of Rs 0.61 crores for the second consecutive quarter, despite challenges in its Foundry business segment.

This transparent reporting of fund utilization demonstrates Walchandnagar Industries' commitment to corporate governance and shareholder trust, as the company continues to navigate the evolving landscape of the engineering and manufacturing sector in India.