Based on the last closing price on Tuesday (July 16), these new stock options are valued at over INR 28.14 Lakh
Shares bought through the stock options can be sold immediately and are not restricted by a lock-in period
This latest issuance of ESOP shares comes a week after Paytm issued 2,81,394 shares under its ESOP 2019 plan
Fintech giant Paytm
has expanded its employee stock option plan (ESOP) pool by allocating 6,000 shares to the employees.
“We wish to inform you that the Nomination and Remuneration Committee of the Board of the Company (“Committee”), at its meeting held today i.e., July 16, 2024, has approved the grant of 6,000 stock options to the eligible employees under One 97 Employees Stock Option Scheme 2019. Further, the Committee took note of 7,26,035 lapsed stock options,” Paytm said in an exchange filing on Tuesday (July 16).
Based on the last closing price on Tuesday (July 16), these new stock options are valued at over INR 28.14 Lakh.
Shares bought through the stock options can be sold immediately and are not restricted by a lock-in period, the company said.
“In case of any corporate action(s) such as rights issue, bonus issue, split or consolidation of equity shares, merger/ amalgamation or sale of division/ undertaking or other reorganization etc., requisite adjustments (which may include adjustments to the number of Stock Options in ESOP 2019) shall be appropriately made, in a fair and reasonable manner in accordance with ESOP 2019,” the filing added.
This latest issuance of ESOP shares comes a week after Paytm issued 2,81,394 shares under its ESOP 2019 plan.
Prior to that, in May, the company granted 87,373 stock options under the same ESOP plan. Last year, Paytm earmarked an additional 1.7 Mn stock options for its employees.
Not to mention, ESOPs are designed to provide employees with company stocks that can be encashed after a specific period at a predetermined value. This practice is typically aimed at retaining talent, enhancing productivity, and attracting new hires.
This development comes on the same day as Paytm teams up with online travel agency FlixBus to expand its intercity bus travel services offerings in India.
Just a day ago, it also received an administrative warning from the market regulator SEBI on related party transactions conducted with Paytm Payment Bank in 2022.
In recent times the company has shown measures which are a mix of both, for and against its workforce.
While One97 Communications is issuing ESOPs, there are also reports that Paytm plans to reduce its workforce by 15-20% this fiscal year as part of restructuring.
Not to mention, several employees have reportedly approached the Ministry of Labour and Employment, alleging “unlawful termination” without due compensation.
In addition to these internal challenges, Paytm has been dealing with regulatory setbacks, such as the Reserve Bank of India’s directive to halt operations of Paytm Payments Bank starting March 2024.
It is pertinent to note that many new-age tech startups, including Paytm, have been allotting ESOPs in recent times. Just a few days ago, Tracxn allotted 3.6 Lakh shares under ESOP while PB Fintech, allocated over 48 lakh ESOPs in June.
Additionally, startups like Delhivery, DeHaat, XYXX, and Purplle have announced ESOP buyback programs to provide liquidity to employees.
