Mahindra Forgings Ltd has informed BSE that the Remuneration / Compensation Committee at its meeting held on February 26, 2008 has granted 4,03,000 options under the Company’s Employee Stock Option Scheme to certain eligible employees of the Company.

Details of the options granted are as follows:

1. a. Number of options granted at exercise price of Rs 83/- per option: 3,91,000 Options.

b. Number of options granted at exercise price of Rs 197/- per option: 12,000 options.

2. Number of ordinary shares covered under the option granted : 4,03,000 equity shares of Rs 10/- each.

3. Vesting period : Minimum one year from the grant of options.

4. Exercise period : Within a period of five years from the date of vesting.

The Remuneration / Compensation Committee considered and approved the Grant of Options to the employees which shall vest in four installments in the following manner:

i. 25% of the total number of Options granted on February 26, 2009.

ii. 25% of the total number of Options granted on February 26, 2010.

iii. 25% of the total number of Options granted on February 26, 2011.

iv. 25% of the total number of Options granted on February 26, 2012.

The grants have been made as per the terms and conditions of the Company’s Employee Stock Option Scheme.