LCC Projects Limited sets Rs 24 crore pay caps as MDs own 82%

LCC Projects Limited has authorised annual remuneration of up to Rs 24 crore each for its two managing directors from April 1, 2026, while the same two executives held 82% of pre-Offer paid-up share capital. Arjan Suja Rabari and Laljibhai Arjanbhai Ahir received Rs 13 crore each from LCC Projects in Fiscal 2026.

How much can LCC Projects’ managing directors be paid?

LCC Projects may pay each managing director up to Rs 24 crore annually, inclusive of salary, perquisites, allowances and other benefits. The entitlement for Chairman and Managing Director Arjan Suja Rabari and Managing Director Laljibhai Arjanbhai Ahir became effective on April 1, 2026, pursuant to Board and shareholder resolutions dated December 18 and December 19, 2024, read with a shareholder resolution dated August 7, 2026.

The Rs 24 crore amount is an annual ceiling rather than a disclosed fixed payment. Each entitlement remains subject to the maximum-remuneration ceiling under Section II of Part II of Schedule V to the Companies Act, 2013, as amended. LCC Projects also states that it had no performance-linked bonus or profit-sharing plan for directors as of the Red Herring Prospectus date.

LCC Projects paid Rs 13 crore to each executive director in Fiscal 2026. The ceiling effective from April 1, 2026 is therefore Rs 11 crore higher for each managing director, and the combined ceiling of Rs 48 crore is Rs 22 crore above the Rs 26 crore paid to both executives in Fiscal 2026.

This comparison measures company-paid remuneration in Fiscal 2026 against the maximum entitlement disclosed from April 1, 2026. It does not establish what either managing director will receive in a later period. LCC Projects said it paid no contingent or deferred compensation to directors in Fiscal 2026.

How concentrated is ownership between LCC Projects’ two managing directors?

LCC Projects’ two managing directors each held 111,520,000 Equity Shares of face value Rs 5, representing 41% each of pre-Offer paid-up share capital. Their combined 223,040,000 shares represented 82% before the Offer, combining the disclosed executive-management roles and a majority equity holding in the same two individuals.

The 82% measure is specifically based on pre-Offer paid-up share capital. The shareholding table does not state post-Offer percentages for either managing director, so these disclosures do not quantify how the combined ownership would change after the Offer. Any continued ownership assessment requires the post-Offer share-capital outcome, which is not provided on the supplied pages.

Maya Arjan Rabari, a non-executive director, held eight Equity Shares described as negligible, while the three independent directors were not listed as shareholders. LCC Projects’ articles do not require directors to hold qualification shares. The total director holding shown in the table was 223,040,008 shares, including the eight shares held by Maya Arjan Rabari.

The prospectus identifies one family relationship on LCC Projects’ six-member Board: Arjan Suja Rabari is the father of Maya Arjan Rabari. It says that, except for this relationship, none of the directors is related to another director, key managerial personnel or senior management. Laljibhai Arjanbhai Ahir is not identified as related to either Arjan Suja Rabari or Maya Arjan Rabari.

What Board arrangements apply to remuneration and related-party oversight?

LCC Projects had six directors as of the Red Herring Prospectus date: two executive directors and four non-executive directors, including three independent directors. The Board included two women directors. The supplied disclosures do not provide attendance records or voting records for the resolutions that set the Rs 24 crore remuneration ceilings.

LCC Projects has constituted five Board-level committees under the Companies Act, 2013 and the Securities and Exchange Board of India, or SEBI, Listing Regulations. The committees are the Audit Committee, Nomination and Remuneration Committee, Stakeholders’ Relationship Committee, Corporate Social Responsibility Committee and Risk Management Committee. The supplied pages name the Nomination and Remuneration Committee but do not identify its membership or terms of reference.

The Audit Committee was constituted through a Board resolution dated December 17, 2024 and has three independent directors. Mirtunjay Singh is chairperson, while Rajnikant Chimanlal Diwan and Vijayalakshmi Suvarna are members. Its stated functions include reviewing financial reporting, evaluating internal financial controls and monitoring the use of funds raised through public offers.

The Audit Committee charter provides that only independent-director members may approve related-party transactions. It also covers approval of certain transactions in which a subsidiary is a party and LCC Projects is not, where the value exceeds 10% of annual consolidated turnover under the stated conditions. These mechanisms address specified transactions but do not change the disclosed 82% pre-Offer holding or the remuneration ceilings.

How did Fiscal 2026 pay differ across LCC Projects’ Board?

LCC Projects paid Rs 26.05 crore in Fiscal 2026 remuneration to its six directors based on the individual amounts disclosed. The Rs 26 crore paid to Arjan Suja Rabari and Laljibhai Arjanbhai Ahir accounted for Rs 26 crore of that total, while the other four directors received a combined Rs 5 lakh. This company-only comparison excludes subsidiary remuneration.

Maya Arjan Rabari received Rs 2 lakh in Fiscal 2026 as a non-executive director. Rajnikant Chimanlal Diwan and Vijayalakshmi Suvarna each received Rs 50,000 as independent directors, while Mirtunjay Singh received Rs 2 lakh. LCC Projects states that sitting fees for attendance at Board meetings and committee meetings are Rs 50,000 respectively, within Companies Act limits.

Arjan Suja Rabari and Laljibhai Arjanbhai Ahir each also received Rs 23 lakh from LCC Minechem Private Limited, a LCC Projects subsidiary, in Fiscal 2026. LCC Projects says no other director received remuneration from subsidiaries in that fiscal year. Those payments are separate from the Rs 13 crore company-paid remuneration received by each executive director.

LCC Projects disclosed no service contracts with directors, key managerial personnel or senior management that provide benefits upon termination of employment. It also said it had not entered into contracts appointing or fixing remuneration for any director in the two years preceding the Red Herring Prospectus date. The disclosed remuneration entitlements arise from the identified Board and shareholder resolutions and remain subject to Schedule V of the Companies Act.

Conclusion

LCC Projects combines 82% pre-Offer equity ownership by its two managing directors with annual remuneration ceilings of Rs 24 crore for each from April 1, 2026. In Fiscal 2026, those executives received Rs 26 crore of the Rs 26.05 crore paid by LCC Projects to all six directors, while three independent directors served on the Audit Committee.

The disclosed items to watch are remuneration actually paid after April 1, 2026 and post-Offer ownership percentages, neither of which is quantified on the supplied pages. LCC Projects says the Companies Act and SEBI Listing Regulations relating to corporate governance will apply immediately on listing of its Equity Shares, and it undertakes to continue compliance with those requirements.