Laxmi India Finance Seeks Shareholder Approval for ESOP Scheme Amendments

Laxmi India Finance Limited (LIFL) has issued a postal ballot notice to seek shareholder approval for significant amendments to its Employee Stock Option Scheme 2023 (ESOS 2023). The company is looking to ratify and amend the scheme, which was initially approved at the Annual General Meeting held on September 19, 2023, prior to the company's listing on stock exchanges.

Key Amendments Proposed

Scheme Duration

The ESOS 2023 will remain in force until all available options are granted and exercised, or the scheme is terminated by the Board.

Option Pool

The scheme proposes to offer up to 20,90,000 options, each convertible into one equity share of Rs. 5.00 face value.

Eligibility

The scheme covers employees working in India or abroad, including directors (excluding independent directors), but excludes promoters and those holding over 10% of the outstanding equity shares.

Vesting Period

The maximum vesting period is set at 4 years from the date of grant, with a minimum gap of 1 year between grant and first vesting.

Exercise Period

Employees will have up to 5 years from the date of vesting to exercise their options.

Pricing

The exercise price will be determined by the Board/Committee, but will not be lower than the face value of the shares on the grant date.

Special Resolution for High-Value Grants

In addition to the scheme amendments, LIFL is seeking approval for granting options exceeding 1% but not exceeding 4% of the issued capital to identified employees during any one financial year. This provision aims to provide the company with flexibility in rewarding key personnel.

Implementation and Administration

The scheme will be directly implemented and administered by the company through its Board/Committee, without involving a trust structure. The company plans to use the Fair Value Method for calculating employee compensation costs related to the ESOP.

Shareholder Voting

Shareholders can cast their votes electronically from November 19, 2025, to December 18, 2025. The results of the postal ballot will be announced by December 22, 2025.

These proposed amendments to the ESOS 2023 reflect LIFL's efforts to align its employee incentive program with current market practices and regulatory requirements post its listing. The changes aim to enhance the company's ability to attract, retain, and motivate key talent in a competitive financial services landscape.

Shareholders are advised to review the detailed explanatory statement provided with the postal ballot notice before casting their votes on these resolutions.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.66%	+1.20%	-7.50%	+1.65%	+1.65%	+1.65%

Laxmi India Finance Limited (LIFL) has reported robust financial results for the second quarter of fiscal year 2025, alongside announcing amendments to its Employee Stock Option Scheme.

Financial Performance

For the quarter and half-year ended September 30, 2025, LIFL posted a net profit after tax of Rs. 19.06 crore. This performance underscores the company's resilience and strategic growth initiatives in the financial services sector.

Employee Stock Option Scheme Amendments

The Board of Directors has approved ratification and amendments to the LAXMI INDIA FINANCE LIMITED EMPLOYEE STOCK OPTION SCHEME-2023. Key highlights of the amendments include:

Authorization to grant options equal to or exceeding 1% of the issued capital to identified employees
Administration of the scheme by the Nomination and Remuneration Committee
A maximum of 20,90,000 options can be granted to eligible employees
Each option is exercisable into one equity share with a face value of Rs. 5

These amendments are subject to shareholder approval through a postal ballot.

Scheme Details

Aspect	Details
Vesting Period	Minimum 1 year, maximum 4 years from the grant date
Exercise Period	Up to 5 years from the respective vesting date
Pricing	To be determined by the Nomination and Remuneration Committee, not lower than the face value of equity shares

The amended scheme aims to align employee interests with those of the company and its shareholders, potentially enhancing long-term value creation.

Corporate Update

LIFL announced a change in its Corporate Identification Number (CIN) from 'U65929RJ1996PLC073074' to 'L65929RJ1996PLC073074', reflecting its status as a listed entity following its debut on the BSE and NSE on August 5, 2025.

These financial results and strategic initiatives demonstrate Laxmi India Finance Limited's commitment to growth and employee engagement in the financial services landscape.