Paytm Allots 2.5 Lakh Equity Shares Under ESOP Schemes

Fintech giant Paytm has allotted 2.54 Lakh equity shares to eligible employees under its employee stock option plan (ESOP). 

In an exchange filing on Wednesday (September 4), Paytm said that the nomination and remuneration committee of its board approved the allotment of 2.54 Lakh equity shares, with a face value of INR 1 each, as fully paid-up to the eligible employees. 

Of these, 2,54,288 shares have been allotted under Employee Stock Option Scheme 2019 and 620 shares have been allotted under Employee Stock Option Scheme 2008. 

With the fresh allotment, the issued, subscribed and paid-up equity share capital of Paytm has increased to INR 63.66 Cr from INR 63.63 Cr earlier. As per Paytm’s last closing price, the value of the freshly allotted shares stand at INR 5.65 Cr.

The exercise price for the allotted shares is INR 9 apiece.

The development comes at a time when a number of listed new-age tech startups have been allotting equity shares to employees under their ESOP plans.

On Tuesday, Mamaearth parent Honasa approved the allotment of 5,79,849 equity shares to its employees under its ESOP plans. Last week, foodtech giant Zomato allotted 38.72 Lakh equity shares. Prior to that, Nykaa allotted 1.73 Lakh equity shares.

The latest development comes at a time when Paytm continues to reel under the Reserve Bank of India’s regulatory crackdown on Paytm Payments Bank. Following the central bank’s action, the fintech giant has seen deterioration in its financials.

Paytm’s net loss more than doubled to INR 840.1 Cr in Q1 FY25 from INR 358.4 Cr in the year-ago quarter. Revenue from operations also declined 36% to INR 1,502 Cr in Q1 FY25 from INR 2,342 Cr in  Q1 FY24.

Recently, Paytm sold its entertainment and ticketing business to Zomato for INR 2,048 Cr to focus on its core payments and financial services distribution business. 

Meanwhile, in a relief, Paytm also secured the government’s approval for its investment in its payments arm, Paytm Payment Services Limited. This will pave the way for the company to apply for a payment aggregator licence.

Shares of Paytm ended today’s trading session 3.11% higher at INR 614.10 on the BSE.

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