Onward Technologies Limited has informed stock exchanges that its US subsidiary has successfully overturned an adverse court judgment in an employment-related dispute. The development represents a significant legal victory for the company's international operations.

Court Petition Successfully Granted

Onward Technologies Inc. (OTI), the wholly owned US subsidiary of Onward Technologies Limited, received favorable relief from the Circuit Court of Cook County, Illinois. The court granted OTI's petition to vacate an ex-parte judgment that was originally passed on April 02, 2025.

Background of Legal Dispute

The case originated from allegations by an ex-employee of OTI regarding non-payment of certain wages. The US Court had initially passed an ex-parte judgment against OTI on April 02, 2025. However, both the company and OTI became aware of this judgment only on August 13, 2025, when they received service of the order.

Following the receipt of the judgment, OTI promptly filed a petition before the US Court to vacate the adverse ruling. The company had previously disclosed this matter to stock exchanges on August 14, 2025, under Regulation 30 of SEBI LODR Regulations.

Current Legal Status and Next Steps

The Circuit Court's order dated January 27, 2026, not only vacated the original judgment but also provided OTI with specific relief for proceeding with the case. The court has granted OTI 30 days from the order date to file its defense or reply to the main case proceedings.

OTI is taking appropriate steps to file its defense within the stipulated timeframe, and the matter is scheduled for a status hearing on March 19, 2026.

Financial Impact Assessment

The company has provided clarity on the financial implications of this legal development. With the vacation of the original judgment, there is no subsisting enforceable monetary liability on OTI as of the current date. Onward Technologies Limited stated that it does not anticipate any material adverse impact on its financials or operations arising from this matter.

This disclosure was made under Regulation 30 of SEBI LODR Regulations, demonstrating the company's commitment to transparency in material legal developments affecting its subsidiary operations.

Onward Technologies Limited has successfully completed the allotment of 7,400 equity shares under its Employee Stock Option Scheme 2019 (ESOP 2019) on January 30, 2026. The allotment was approved by the Nomination and Remuneration Committee of the Board of Directors through a resolution passed by way of circulation.

Share Allotment Details

The company issued the equity shares to eligible employees who exercised their vested options under ESOP 2019. Each share was priced at ₹20, consisting of a face value of ₹10 and a premium of ₹10 per share.

Post-Allotment Capital Structure

Following this allotment, Onward Technologies Limited's capital structure has been updated with the new share count and capital base.

Regulatory Compliance and Share Characteristics

The allotment has been made in compliance with Regulation 10(c) of the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. The company has filed the necessary intimation with both BSE Limited and National Stock Exchange of India Limited, where its shares are listed under scrip codes BSE: 517536 and NSE: ONWARDTEC respectively.

The newly allotted equity shares will rank pari-passu with the existing equity shares of the company, ensuring equal rights and privileges for all shareholders. No lock-in period applies to these shares, and they are identical in all respects to the existing shares.

ESOP Scheme Background

The Employee Stock Option Scheme 2019 was originally filed with the stock exchanges in 2019, with BSE filing completed on October 15, 2019, and NSE filing on September 30, 2019. The scheme filing numbers are DCS/IPO/SD/ESOP-IP/295/2019-20 for BSE and NSE/LIST/21914 for NSE. This latest allotment represents the continued implementation of the company's employee incentive program designed to align employee interests with shareholder value creation.