Bajaj Electricals Grants 88,222 Performance Stock Options to 7 Employees

Key Takeaways

• Bajaj Electricals has approved the grant of 88,222 performance stock options to seven eligible employees under its Performance Stock Option Plan 2023.
• The options carry an exercise price of ₹2 per equity share and could result in the issuance of an equivalent number of shares, subject to the plan's conditions.
• Employees will generally have two years from the respective vesting dates to exercise their options, according to the October 28, 2026, exchange filing.
• Bajaj Electricals Limited has approved the grant of 88,222 performance stock options to seven eligible employees under its Performance Stock Option Plan 2023 (PSOP Plan 2023).
• The company's Nomination and Remuneration Committee approved the grant at its meeting held on October 28, 2026.
• In its regulatory disclosure to the NSE and BSE, Bajaj Electricals stated that the options carry an exercise price of ₹2 per equity share, equivalent to the face value of the company's shares.
• The grant forms part of the company's existing employee share-based compensation programme rather than a newly announced stock option scheme.

Bajaj Electricals Stock Option Grant: Key Details

The company disclosed the following terms:

Each option represents the potential right to receive one fully paid-up equity share, subject to the terms of the plan.

If all 88,222 options are exercised, they would result in the issuance of 88,222 equity shares. The actual number of shares issued will depend on the options that vest and are subsequently exercised.

How the Performance Stock Option Plan Works

Performance stock options are a form of employee compensation in which eligible employees receive the right to acquire company shares after satisfying specified conditions.

A grant does not immediately create new outstanding equity shares.

Employees must first meet the applicable vesting conditions. Once vested, the options can be exercised according to the scheme's rules.

For the October 28 grant, Bajaj Electricals specified an exercise window of two years from the respective vesting dates, except in circumstances covered by the PSOP Plan 2023.

The company did not disclose that any of the newly granted options had vested or been exercised.

It also reported that details concerning money received from exercise, shares issued upon exercise and diluted earnings per share were not applicable at the grant stage.

This distinction matters because the approval creates potential future equity issuance. It does not mean that 88,222 additional shares were allotted on October 28.

Existing Scheme and Regulatory Compliance

The PSOP Plan 2023 is governed by the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021.

Bajaj Electricals stated that the plan complies with the applicable SEBI framework.

The company referred to its postal ballot notice dated November 6, 2023, which contains the explanatory statement setting out the scheme's terms.

In the October 28 filing, Bajaj Electricals also clarified that the grant did not cross the applicable materiality threshold. The disclosure was nevertheless made as part of its corporate governance practices.

The options have been granted to a group of seven eligible employees. The filing does not identify the individual recipients or provide an employee-wise allocation.

There was no announcement of changes to the exercise price, cancellation of existing options or amendments to the scheme's terms.

The disclosure was signed by Prashant Dalvi, Chief Compliance Officer and Company Secretary of Bajaj Electricals Limited.

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