Exclusive: IPO-Bound Paytm’s Employees Convert ESOPs Worth Around INR 346.9 Cr To Shares

IPO-bound One97 Communications which operates digital payments platform Paytm has allotted a total of 18,49,191 equity shares to its 120 employees upon ESOP conversion.  

As per the regulatory filings accessed by Inc42 dated October 1, while majority of the ESOPs were granted at INR 9, some were granted at even INR 4.9, INR 1 and INR 18. 

Based on One97 Communications’ previous filings, the startup’s equity shares were worth around INR 1,876. Thus upon further calculation, the converted ESOPs are worth INR 346.9 Cr, which Patym had allotted for INR 2.7 Cr.

Among the employees who have converted their ESOPs into shares is CEO of Paytm Labs Harinder Takhar. He has been allotted 12,22,940 equity shares for INR 2.2 Cr. He also held the position of CEO at Paytm for two years and five months between 2011 and 2014.

Earlier in August, around 166 former and current employees of Paytm had converted their ESOPs into shares worth INR 182 Cr. The latest development comes after Patym had increased its employee stock option plan (ESOP) pool nearly 2.5x from a little over 24 Mn to 61 Mn.

As per media reports, Paytm had sent out an email to its employees stating that the last day to convert their ESOPs (Employee Stock Option Plan) into shares is 22 September for KMPs (Key Management Personnel) and 27 September for “Designated Persons”.

Paytm had a total paid-up capital (PUC) of 60.7 Cr shares of face value INR 1 each, where 909 employees have over 14 Mn vested ESOPs, according to the company’s draft IPO documents filed in July.

Founded in 2009 by Vijay Shekhar Sharma, One97 Communications filed its draft red herring prospectus (DRHP) for public listing earlier this year. With the IPO, the startup aims to raise INR 16,600 Cr. Its offer comprises a fresh issue of shares worth INR 8,300 Cr and an offer for sale (OFS) worth INR 8,300 Cr.

The fintech startup is aiming for the biggest IPO issue after Coal India which had raised INR 15,000 Cr from the public market. 

One97 Communications is at present valued at $16 Bn and is looking at a valuation of $25 Bn – $30 Bn valuation. Paytm enjoys support from Ant Financials, SoftBank, Elevation Capital, Discovery Capital, and others.

The story first appeared on Inc42 on October 5 at 11:10 PM