Paytm Expands ESOP Pool With Grant Of 1.09 Lakh Stock Options

SUMMARY

The company announced the allotment of the stock options under its ESOP 2019

Further, the committee took note of 4.1 Lakh stock options that have lapsed

This comes a couple of days after Paytm approved the allotment of 84,793 equity shares under its ESOP schemes

Fintech giant Paytm has expanded its employee stock options pool with the grant of 1.09 Lakh stock options.

In an exchange filing on Tuesday (March 11), Paytm said, “… the nomination and remuneration committee of the board of the company… has approved the grant of 1,09,995 stock options to the eligible employees under One 97 Employees Stock Option Scheme 2019.”

Further, the committee took note of 4.1 Lakh stock options that have lapsed.

The newly allotted stock options will be converted into one fully paid equity share with the face value of INR 1 each after vesting. The company has set the exercise price at INR 9 per stock option.

This comes a couple of days after Paytm approved the allotment of 84,793 equity shares under its ESOP schemes.

The company has approved allotment of shares under ESOP schemes and grant of new options multiple times in the recent past. Last month, the Vijay Shekhar Sharma-led company expanded its ESOP pool by granting 2.03 Lakh (2,03,137) stock options under ESOP 2019. In January, the company allotted 1.48 Lakh equity shares to its eligible employees under ESOP 2019 and ESOP 2008.

On the business front, the company continues to grapple with regulatory issues. Earlier this month, the Enforcement Directorate (ED) issued a show cause notice to Paytm for allegedly violating the Foreign Exchange Management Act (FEMA).

The ED said that One97 Communications failed to report its foreign investment in two companies to the Reserve Bank of India (RBI).

Last month, the GST department slapped a fine of INR 59.94 Lakh on its founder and CEO Sharma and an additional penalty of INR 1.19 Cr on its parent One97 Communications for violating tax norms.

Meanwhile, Paytm’s consolidated net loss narrowed 6% to INR 208.5 Cr in the third quarter of FY25 from INR 221.7 Cr in the same quarter last year on the back of recovery in its digital payments business. However, operating revenue crashed 36% to INR 1,827.8 Cr during the quarter under review from INR 2,850.5 Cr in the year-ago quarter.

Shares of Paytm were trading 4.7% higher at INR 696.30 apiece on the BSE on Tuesday (March 11) at 11:17 AM.