Digitide solutions Limited has announced the incorporation of a wholly-owned subsidiary in Dubai, United Arab Emirates, marking a significant expansion of its international operations. The new entity, named Digitide IT Solutions L.L.C S.O.C, was incorporated on March 11, 2026, in the mainland of Dubai.

Subsidiary Details and Structure

The newly incorporated subsidiary has been established with specific operational parameters designed to support the company's IT services expansion strategy.

Business Scope and Operations

The subsidiary has been incorporated to carry on comprehensive IT services operations that align with the parent company's core business activities. The entity will focus on providing:

• IT services and infrastructure solutions
• Data classification and analysis services
• Cloud services
• Data center operations
• Application development services

The business scope of the new wholly-owned subsidiary directly complements the main line of business of Digitide Solutions Limited, ensuring strategic alignment and operational synergy.

Regulatory Compliance

The incorporation has been completed in accordance with regulatory requirements under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has fulfilled all necessary disclosure obligations as specified in the SEBI Master Circular dated January 30, 2026.

No specific governmental or regulatory approvals were required for the incorporation process, and no cash consideration or share swap arrangements were involved in the establishment of the subsidiary. The company maintains complete ownership and control of the new entity through its 100% shareholding structure.

Strategic Implications

This incorporation represents Digitide Solutions Limited's commitment to expanding its international presence in the UAE market. The Dubai-based subsidiary positions the company to serve clients in the Middle East region while leveraging the strategic advantages of Dubai's business-friendly environment for IT services companies.

Digitide Solutions Limited has issued a postal ballot notice dated February 26, 2026, seeking shareholder approval for the implementation of its Employee Stock Option Scheme 2026. The notice, disclosed under Regulation 30 of SEBI's Listing Obligations and Disclosure Requirements Regulations, 2015, outlines four special resolutions requiring shareholder consent.

Key Resolutions for Shareholder Approval

The postal ballot notice encompasses four critical special resolutions that will shape the company's employee compensation strategy:

Scheme Structure and Key Features

The Employee Stock Option Scheme 2026 represents a comprehensive equity compensation framework designed to attract and retain talent across the organization. The scheme proposes to grant up to 49,65,568 employee stock options to eligible employees, with each option convertible into one equity share of face value Rs. 10/-.

Implementation Framework

The scheme will be administered through an irrevocable employee welfare trust named 'Digitide ESOP Trust', ensuring compliance with SEBI's Share Based Employee Benefits and Sweat Equity Regulations 2021. The trust structure enables both primary issuance and secondary acquisition of shares for scheme implementation.

Eligibility and Performance Criteria

Eligible participants include employees of the company and its subsidiaries working in India or outside India, along with non-executive directors who are not promoters. The vesting structure incorporates performance-based criteria:

Options will vest over a period ranging from one to four years, with the exercise price set at the face value of shares. The exercise period extends to a maximum of three years from each vesting date.

Financial Framework and Limits

The company seeks authorization to provide financial assistance to the trust up to 5% of its aggregate paid-up capital and free reserves. This interest-free loan will facilitate share acquisition through primary issuance and secondary market purchases, with repayment structured through exercise proceeds and other trust income.

Secondary acquisition limits align with regulatory requirements, capping annual purchases at 2% of the previous year's paid-up equity capital, with an overall ceiling of 5% of paid-up equity capital.

Voting Timeline and Process

Shareholders can participate in the remote e-voting process through CDSL's platform. The voting timeline is structured as follows:

The scrutinizer, Mr. Devesh Kumar Vasishth of M/s. DPV & Associates LLP, will oversee the voting process and submit the report within two working days of the e-voting period's conclusion.

Strategic Rationale

The company emphasizes that equity-based compensation serves as an effective tool for talent retention and value creation alignment. As the organization expands its business footprint and addresses market competition, the scheme addresses the critical need for attracting and retaining key personnel with leadership qualities and specialized skills.

The mixed approach of primary and secondary acquisition is designed to minimize equity dilution while providing flexibility in scheme implementation. Corporate performance parameters will include revenue targets, EBITDA achievements, and operating cash flow metrics, ensuring alignment with business objectives.

Source: None/Company/INE0U4701011/f3a033d3-a3e4-43b9-963e-690a969bdf6d.pdf