Tech Mahindra Limited, one of India’s leading technology services and consulting companies, has officially communicated the allotment of 76,796 equity shares to employees under its Employee Stock Option Plans (ESOPs), as per a regulatory filing with the BSE and the NSE on 3rd May 2025. The allotment follows the exercise of stock options by eligible employees under two distinct ESOP schemes—ESOP-2014 and ESOP-2018.

The company’s Securities Allotment Committee approved the allotment during their meeting on May 3, 2025. The breakdown of the allotment is as follows:

• 16,504 equity shares were allotted under the Employee Stock Option Plan – 2014 (ESOP-2014).

• 60,292 equity shares were allotted under the Employee Stock Option Scheme – 2018 (ESOP-2018).

In compliance with SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021, Tech Mahindra has filed the necessary statements with the stock exchanges, including BSE and NSE. These filings provide the requisite details of the ESOP schemes and the exercise price, which is ₹ 5/- per share, identical to the face value of the shares.

The shares allotted are fully paid-up and have been issued at the face value of ₹ 5/- each, with no premium applicable. Tech Mahindra emphasizes that these newly allotted shares are identical in every respect to the existing equity shares, and thus rank pari passu with the already outstanding shares.

The distinctive share numbers assigned to the newly allotted shares range from 999578713 to 999655508, and the shares have been credited to the eligible employees’ demat accounts under the ISIN: INE669C01036.

This allotment is part of Tech Mahindra’s broader effort to reward and retain key talent within the company, aligning employee interests with the company's long-term growth and shareholder value. The exercise of stock options is a strategic initiative that helps incentivize employees, ensuring that their interests are closely tied to the success of the company.

Notably, these allotted shares will not be subject to any lock-in period, as confirmed by the company. This flexibility allows employees to freely trade the allotted shares in the open market, providing them with liquidity options. Since no lock-in is imposed, the shares can be freely sold or transferred at their discretion.

The total issued share capital of Tech Mahindra post this allotment stands at ₹ 4,895,352,540/-, and the total number of issued shares is now 979,070,508. These figures reflect the company's robust stock-based compensation framework and its commitment to aligning employee rewards with corporate performance.

This equity allotment serves as a vital tool for Tech Mahindra in retaining top talent, especially in a competitive technology sector where human capital plays a pivotal role in driving innovation and growth. It is also a step toward strengthening the company’s employee engagement and incentivizing long-term loyalty from its workforce.

Regulatory Compliance
As required by SEBI regulations, Tech Mahindra’s employee stock option schemes were approved by the stock exchanges before the notification of the SEBI (Share Based Employee Benefits) Regulations, 2014. The company has ensured that all necessary filings and approvals were in place for the corporate action, ensuring full compliance with SEBI guidelines.

Tech Mahindra's CIN (Corporate Identification Number) is L64200MH1986PLC041370, and its registered office is located in Gateway Building, Apollo Bunder, Mumbai. As a leading player in the information technology (IT) services industry, Tech Mahindra continues to uphold high standards of corporate governance, transparency, and employee welfare.

Impact on Investors
For investors, this allotment does not have any immediate financial impact on the company’s stock price or market capitalization, as the shares have already been issued at the face value. However, it may indicate continued employee satisfaction and retention and signal a positive work environment at the company. The lack of a lock-in period could also lead to some employee share sales, although this will likely be part of the natural course of share trading rather than a disruptive force on the market.

With the allotment completed, Tech Mahindra remains committed to ensuring market stability, maintaining shareholder value, and driving forward its technological and operational growth. The company’s strategic approach to stock-based compensation reinforces its ongoing commitment to both its employees and investors.

For stakeholders, including investors, analysts, and other market participants, this equity allotment is a transparent update on Tech Mahindra’s corporate actions and employee stock options. The next steps will involve monitoring the company's performance post-allotment, especially regarding any potential movement in employee stock trading and the broader impact on the company’s stock price.

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