Urban Company Limited has announced the grant of 565,100 stock options to eligible employees under its Employee Stock Option Scheme 2015. The Nomination and Remuneration Committee of the company's board approved this grant during its meeting held on January 13, 2026.

Stock Option Grant Details

The committee meeting, which commenced at 09:00 a.m. IST and concluded at 10:30 a.m. IST, resulted in the approval of stock options that comply with SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. The grant represents a significant employee benefit initiative by the company.

Key Terms and Conditions

Each stock option granted under the ESOP Scheme 2015 is convertible into one fully paid-up equity share having a face value of ₹1.00 each. The exercise price has been set at ₹1.00 per stock option, making it accessible for eligible employees.

The stock options carry a 10-year exercise window from the date of vesting, providing employees with substantial flexibility in timing their exercise decisions. Additionally, the equity shares allotted pursuant to the exercise of these stock options will not be subject to lock-in restrictions.

Regulatory Compliance

The grant has been made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The ESOP Scheme 2015 includes provisions for handling stock options in various scenarios including death, permanent incapacity, resignation, termination, retirement, and abandonment.

Corporate Communication

The disclosure was signed by Sonali Singh, Company Secretary and Compliance Officer (Membership No.: A26585), and has been communicated to both the National Stock Exchange of India Limited (Symbol: URBANCO) and BSE Limited (Scrip Code: 544515). The company has also indicated that these details will be hosted on its investor relations website at investorrelations.urbancompany.com.

Urban Company has disclosed receiving a significant GST demand order from tax authorities, marking a major regulatory development for the home services platform. The company received the order from CGST authorities for a total amount of ₹56.43 crores, including a penalty.

GST Demand Details

The Central Goods and Services Tax (CGST) authorities have passed an order confirming substantial financial demands against the company:

Nature of Tax Dispute

The demand order stems from disagreements over GST discharge rates on payments made to service professionals. Urban Company has been discharging GST at 5% rate under Section 9(5) of the CGST Act 2017 on payments made to professionals providing:

• Plumbing services
• Carpentry services
• Electrician services
• Cleaning services

The company covered these services under housekeeping services classification. However, the tax authorities have taken a different view regarding the scope of housekeeping services under Section 9(5), extending it to include:

• Appliance repair services
• Appliance servicing
• Painting services

The GST demand has been raised on payouts to service professionals rendering these additional services.

Company's Response Strategy

Urban Company has outlined its approach to contest the order:

The company plans to file an appeal against the GST demand order, maintaining confidence in its position. Urban Company states that it believes it has a strong case on merits, supported by opinions from external legal and tax advisors.

Regulatory Compliance

This disclosure has been made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The information follows SEBI Master Circular guidelines and will be hosted on the company's investor relations website at https://investorrelations.urbancompany.com/ .

The company has assured that the aforementioned order will not impact its financial, operational, or other activities, indicating business continuity despite the regulatory challenge.