Paytm approved the grant of 4.81 Lakh stock options to eligible employees under its Employee Stock Option Scheme 2019
The stock options are convertible into an equivalent number of equity shares, each with a face value of INR 1, while the exercise price for each option is set at INR 9
The company also announced the cancellation or lapsing of 26.96 Lakh stock options under the scheme due to various reasons
Fintech giant Paytm
has expanded its ESOP pool by granting an additional 4.81 Lakh stock options to employees under its Employee Stock Option Scheme 2019 (ESOP 2019).
As per an exchange filing, the stock options are convertible into an equivalent number of equity shares, each with a face value of INR 1, while the exercise price for each option is set at INR 9.
As per Paytm’s last closing price of INR 724.95, the newly allotted ESOPs are worth INR 34.8 Cr.
Along with the new grants, the company announced the cancellation or lapsing of 26.96 Lakh stock options under the scheme due to various reasons such as employee resignation and other corporate actions.
This development follows Paytm’s earlier announcement in September 2024, when it allotted 2.54 Lakh equity shares under its ESOP schemes.
In that case, 2,54,288 shares were allotted under ESOP 2019, and 620 shares under the ESOP 2008.
Following the Reserve Bank of India’s crackdown on Paytm Payments Bank at the beginning of the ongoing year, Paytm has been facing headwinds. Its net loss more than doubled in the first quarter (Q1) of the financial year 2024-24 (FY25) to INR 840.1Cr and revenue from operations declined 36% year-on-year to INR 1,502 Cr.
Despite these challenges, Paytm has continued to focus on its core financial services business.
Recently, it sold its entertainment and ticketing business to Zomato for INR 2,048 Cr to focus on 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 Ltd. It paved the way for the company to reapply for payment aggregator licence.
The company also continues to be bullish on AI. Earlier this month, it appointed its former payments CTO Manmeet Dhody as “AI Fellow” to drive its projects related to AI innovation in business.
