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HomeInsightNews & UpdatePaytm grants ESOPs worth over Rs 222 Cr

Paytm grants ESOPs worth over Rs 222 Cr

Paytm grants ESOPs worth over Rs 222 Cr
Paytm

One97 Communications, the parent company of digital payments firm Paytm, has granted 3.97 million new stock options to its employees, under One97 Employees Stock Option Scheme 2019.

These ESOPs have been given at a time when the firm’s share price is trading at its lowest level since listing in November last year.

The company informed the exchanges that the exercise price of these stock options is Rs.9 each.

Shares of One97 Communications were trading at Rs 559.8 in Monday morning’s trade, down 1.47% since the market closed on May 6. Since listing in November 2021, One97 stock has been closed, down 74% from its IPO price of Rs 2,150 per share.

The firm has also allotted 177,114 equity shares to the employees exercising its options.

However, the company did not disclose the number of employees who would benefit after this grant.

“Consequent to aforesaid allotment, the issued, subscribed and paid-up equity share capital of the company stand increased from approximately 64,85,67,292 (consisting of 64,85,67,292 equity shares of face value of Rs 1 each) to approximately 64,87,44,406 (consisting of 64,87,44,406 equity shares of face value of Rs 1 each),” said Paytm in its filing.

The company also clarified that the plan also provides settlement options in case of death, permanent disability, resignation, dismissal, retirement and abandonment.

According to regulatory filings, before listing on the public market in November last year, Paytm had given fresh ESOPs to 166 former and current employees, who were later converted into shares of the company.

“Paytm should be operating EBITDA breakeven in next six quarters (ie EBITDA before ESOP cost, and by the quarter ending September 2023), well ahead of estimates by most analysts. We are going to achieve this without compromising any of our growth plans”, Founder Vijay Shekhar Sharma, said in a recent letter.

As per Paytm’s regulatory filings, the firm had allotted 10,11,582 equity shares to employees who had submitted applications for exercising vested options under ESOP Scheme 2008 and ESOP Scheme 2019.

About Paytm

Paytm started the Digital Revolution in India. And it went on to become India’s leading Payments App. Today, more than 20 Million merchants & businesses are powered by Paytm to Accept Payments digitally. This is because more than 300 million Indians use Paytm to Pay at their stores. And that’s not all, the Paytm App is used to pay bills, do Recharges, Send money to friends & family, and Book movies & travel tickets.

With innovations to Financial services & products in the pipeline, this is but one of the milestones achieved towards our mission – to bring 500 million unserved and underserved Indians to the mainstream economy.

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