2 days ago
Paytm Grants INR 215 Crore in Fresh ESOPs
The options were allocated at an exercise price of INR 9 per share, significantly below the company's current market value of INR 906 per share
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Paytm has issued a new round of employee stock options (ESOPs) worth approximately INR 215 crore, according to a regulatory filing by One97 Communications, the company that operates the fintech platform. The move comes as part of its ESOP 2019 scheme, under which a total of 23,70,790 stock options have been granted.
The options were allocated at an exercise price of INR 9 per share, significantly below the company's current market value of INR 906 per share. Each option entitles the holder to one fully paid-up equity share with a face value of INR one. Based on the current market rate, the total value of the allocation is estimated at INR 215 crore.
These ESOPs can be exercised at any point during the employee's active tenure with the company, following the vesting period. The scheme also outlines provisions for how options are to be handled in scenarios such as resignation, termination, retirement, death, or permanent incapacity. Further, the company has specified that the equity shares resulting from the exercise of these options will not be subject to any lock-in period.
According to the filing, 3,46,746 options have lapsed in accordance with the terms of the ESOP 2019 plan. The company noted that the plan includes mechanisms to adjust the number of stock options in the event of corporate actions such as mergers, stock splits, bonus issues, or divestitures. These adjustments, the filing states, would be "appropriately made, in a fair and reasonable manner."
This latest grant comes amid a broader trend of Indian tech firms using ESOPs to retain talent in a competitive market. Paytm's ESOP 2019 scheme is one of its core retention strategies, designed to align long-term employee incentives with shareholder value.
The stock options are governed by the rules laid out in the ESOP 2019 plan, which has been previously approved by Paytm's board and shareholders.
