IPO-bound Paytm has reportedly 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”.
Recently, the fintech startup increased its ESOP pool from 24 Mn to 61 Mn, where 200+ employees have converted their ESOPs to shares. Further, since turning ESOPs to shares will cost employees taxes and other fees, Paytm is also facilitating loans of up to INR 100 Cr through its lending partners, bearing the interest of these loans for six months to help “employees handle their finances better and yet, become proud shareholders of the company”.
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.
According to a Mint report quoted by a source, after the declarations of ESOP conversions, there will be no further change in holding. “Based on the PUC and an expected valuation of around INR 1.47 Lakh Cr, it will lead to immense wealth creation for its employees,” according to the report.
Founded in 2009 by Vijay Sharma, One97 Communications, the parent company of Paytm, filed its draft red herring prospectus (DRHP) for public listing earlier this year. With the IPO, the unicorn aims to raise INR 16,600 Cr. Its offer comprises a fresh issue of 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-$30 Bn valuation. Paytm enjoys support from Ant Financials, SoftBank, Elevation Capital, Discovery Capital, and others.