Paytm Adds 2.03 Lakh Stock Options to the ESOP Pool
By offering 2.03 Lakh (2,03,137) stock options under its ESOP Plan 2019, Paytm has increased the scope of its employee stock option plan (ESOP). The company stated in an exchange filing on January 17 that it would like to notify the exchange that 2,03,137 stock options have been granted to eligible employees under the One 97 Employees Stock Option Scheme 2019 ("ESOP 2019") by the Nomination and Remuneration Committee of the Board of the Company ("Committee") at its meeting on January 17, 2025.
The business added that each stock option has the potential to be converted into a single, fully paid-up equity share, each of which has a face value of INR 1. The projected total value of these stock options is INR 18.27 Cr, based on Paytm's stock closing price of INR 899.65 a share on Friday. Paytm reported the cancellation or lapse of 17,68,469 stock options in addition to the fresh ones. In accordance with the terms and conditions of the ESOP 2019 plan, this includes the cancellation of 44,848 stock options.
Various ESOP Pool Launched by Paytm
Paytm distributed 1.48 lakh equity shares to qualified workers earlier this month through a number of employee stock option plan (ESOP) programs. In recent months, Paytm has witnessed a number of ESOP-related changes. Under its ESOP 2019 and ESOP 2008 schemes, the fintech giant distributed 2.44 lakh equity shares to qualified employees in December 2024. In November 2024, it additionally reserved 4 lakh equity shares under ESOP 2019 for its qualified employees. In addition, eight Paytm representatives reached a settlement with the market watchdog. These individuals settled the matter by paying a cumulative sum of INR 3.32 Cr, without acknowledging or denying the findings of SEBI.
Paytm’s Current Financial Outlook
In terms of finances, the fintech giant made money in the second quarter of FY25, reporting a net profit of INR 930 Cr as opposed to a loss of INR 292 Cr in the same period last year. Profitability resulted from the business selling Paytm Insider, its ticketing division, to Zomato for INR 2,048 Cr during the September quarter. For INR 2,364 Cr ($279.19 Mn) in the December quarter, Paytm sold SoftBank's Vision Fund 2 its stock acquisition rights (SARs) in the Japanese digital payments company PayPay Corporation. On January 20, the business is scheduled to release its Q3 FY25 financial results.
For $279.2 million, the Singapore-based affiliate of Paytm recently sold Softbank Vision Fund 2 all of its stock acquisition rights in Japan's PayPay. As Paytm strives to reduce operations to concentrate on its main business in India, the sale is anticipated to enhance the company's consolidated cash balance.
Nitin Konde
