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Board Approves ESOP Scheme, Proposes Options for Top Executive
Meta Infotech Limited's Board of Directors met on May 4, 2026, approving the ESOP Scheme 2026. This plan authorizes 18,88,140 stock options for employees, each convertible to one Rs. 10 face value equity share. The board also proposed granting up to 9,44,070 options to COO/CRO Mr. Ambrish Deshpande over five years, capped at 5% of the company's paid-up capital as of March 31, 2026. Additionally, revisions to the remuneration of Whole-time Director Mr. Rama Krishna Kishore Achuthani and other key staff, including the CFO and a Team Lead, were approved.
Why This Matters to Investors
The new ESOP Scheme aims to attract and retain essential employees by aligning their interests with company growth. However, the significant option grant proposed for the COO/CRO introduces a potential equity dilution for current shareholders. This dilution factor will be closely watched by investors.
Company Background
Meta Infotech, founded in 1998 and specializing in cybersecurity since 2010, has been actively developing its corporate structure. The company transitioned to a Public Limited Company on September 2, 2024, and subsequently listed on the Bombay Stock Exchange SME Platform on July 11, 2025. This listing boosted its public presence and access to capital. In September 2025, Meta Infotech reported securing new and renewed orders totaling ₹127.7 crore, indicating positive business momentum.
Next Steps and Approvals Needed
The proposed ESOP Scheme 2026 and the option grant for the COO/CRO will now be put before shareholders for their approval, likely through a postal ballot. The company must also obtain necessary clearances from the Bombay Stock Exchange (BSE).
Potential Risks
Key risks involve obtaining shareholder consent for the ESOP plan and the potential dilution from the COO/CRO's options. If shareholders vote against these proposals, or if BSE approval is not granted, the ESOP rollout could be stalled.
Peer Practices
Employee stock options are a common practice in the IT sector. Companies like Persistent Systems, L&T Technology Services, Infosys, and Wipro also use similar ESOPs to motivate and retain their workforce in a competitive industry.