Mphasis has issued a clarification regarding recent reports of Blackstone Group potentially reducing its stake in the company. The IT services firm has emphasized that it is not directly involved in any such transaction.

Key Points of Clarification

• Mphasis is not a party to the reported potential transaction involving Blackstone trimming its stake.
• Any such deal would involve the company's promoter, BCP Topco IX Pte. Ltd., which is part of the Blackstone Group.
• The company has reached out to its promoter to seek further information on the matter.

Regulatory Compliance

Mphasis has stated that there is currently no material event or information that requires disclosure under the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements Regulations, 2015. However, the company has assured that it will make appropriate disclosures in compliance with applicable laws if and when required.

Market Impact

While the news of a potential stake sale by a major shareholder like Blackstone could influence market sentiment, Mphasis's clarification aims to provide transparency and maintain investor confidence. The company's proactive communication demonstrates its commitment to keeping shareholders informed about significant corporate developments.

About Mphasis

Mphasis is a leading IT services and solutions provider specializing in cloud and cognitive services. The company's clarification regarding the reported stake sale underscores its focus on maintaining clear communication channels with its investors and regulatory bodies.

Investors and market participants are advised to rely on official company statements and regulatory filings for accurate information regarding any potential changes in Mphasis's ownership structure.

Mphasis Limited, a leading IT services and solutions provider, has announced the approval of employee stock benefits through its ESOP Compensation Committee. The company has granted a total of 25,000 stock options and 7,500 Restricted Stock Units (RSUs) to identified employees of the company and its subsidiaries.

Stock Options Grant Details

The company has granted 25,000 stock options under the Employee Stock Option Plan 2016 (ESOP 2016) with the following terms:

Each option entitles the holder to apply for one equity share of the company with a face value of ₹10.00.

Restricted Stock Units (RSUs) Grant Details

Additionally, 7,500 RSUs have been granted under the Restricted Stock Units Plan 2021 (RSU Plan 2021) with the following terms:

The RSU plan includes automatic exercise provisions, particularly for US employees subject to Internal Revenue Code requirements. Non-US employees have the option to elect either automatic exercise or exercise by notice.

Implementation and Governance

Both the stock options and RSUs will be administered through employee trusts - the Mphasis Employees Equity Reward Trust for stock options and the Mphasis Employees Benefit Trust for RSUs. The shares arising from the exercise of these stock benefits are proposed to be allotted through these trusts.

The grants are subject to the provisions of the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021, and are governed by their respective plans, which were submitted to the stock exchanges at the time of obtaining in-principle approval.

This move by Mphasis aligns with industry practices of offering equity-based compensation to attract and retain talent, potentially fostering a sense of ownership among employees and aligning their interests with those of the company's shareholders.

Investors and stakeholders may view this development as a positive step towards employee retention and motivation, which could contribute to the company's long-term growth and performance in the competitive IT services sector.