Piramal Finance Limited Amends Employee Trust Deeds Following Corporate Merger
Piramal Finance Limited executed amended trust deeds on December 30, 2025, establishing two employee benefit trusts following its merger with Piramal Enterprises Limited. The Senior Employees Welfare Trust and PFL Employee ESOP Trust will provide stock option schemes and welfare benefits to eligible employees, with each trust maintaining an initial corpus of ₹10,000.00 and operating under SEBI regulations for employee stock ownership participation.
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Piramal Finance Limited has executed amended and restated trust deeds dated December 30, 2025, establishing two reconstituted employee benefit trusts following its corporate merger with Piramal Enterprises Limited. The restructuring creates comprehensive employee welfare and stock option schemes designed to provide incentives and benefits to the company's workforce.
Trust Reconstitution Details
The company established two distinct trusts through separate amended trust deeds executed on December 30, 2025. The restructuring follows a composite scheme of arrangement between Piramal Enterprises Limited and Piramal Finance Limited that became effective on September 16, 2025, after approval from the National Company Law Tribunal, Mumbai Bench on September 10, 2025.
| Trust Details: | Specifications |
|---|---|
| First Trust Name: | Piramal Finance Limited Senior Employees Welfare Trust |
| Second Trust Name: | PFL Employee ESOP Trust |
| Execution Date: | December 30, 2025 |
| Merger Effective Date: | September 16, 2025 |
| Initial Corpus: | ₹10,000.00 each |
Trustee Appointments
The company appointed new trustees for both trusts to oversee their administration and implementation. For the Senior Employees Welfare Trust, Shri Bharat Mehra and Shri Nandan Damani were appointed as trustees. The PFL Employee ESOP Trust will be managed by Shri Arvind Agarwal and Shri Suresh Tapuriah as trustees.
Trust Objectives and Structure
Both trusts are designed to provide comprehensive employee benefits and stock ownership opportunities. The trusts will operate employee stock option schemes in compliance with Securities and Exchange Board of India regulations, allowing eligible employees to participate in the company's equity ownership.
Key objectives of the trusts include:
- Providing welfare benefits for employees and their families
- Operating stock option schemes for employee motivation and performance incentives
- Acquiring and holding company shares for employee benefit
- Advancing loans and financial assistance to employees for share acquisition
- Distributing income and corpus among beneficiaries as determined by the Compensation Committee
Employee Eligibility and Benefits
The trusts define eligible employees as permanent staff working in India or abroad, directors (excluding independent directors), and employees of group companies including subsidiaries and associates. However, promoters and directors holding more than 10.00% equity stakes are excluded from participation.
Beneficiaries will have specific rights including inspection of trust documents and receiving shares upon exercise of stock options. The trusts will acquire company shares through subscription or secondary market purchases, subject to regulatory compliance, and transfer these shares to employees upon option exercise.
Trust Duration and Distribution
The trusts will continue for 18 years from the death of the last beneficiary existing on the execution date, or until the company's winding up or unanimous trustee decision for earlier distribution. The Compensation Committee will determine the proportion of trust fund distribution among beneficiaries at the designated distribution date.
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