Tuesday, 6 August 2024, Bangalore, India
Paytm is an online payment platform that expanded its Employee Stock Option Plan by offering its employees more than 1,10,357 equity shares. These newly allocated shares are worth around Rs 5.4 crore. The company provides different financial services and a secure platform to make seamless and easy transactions. The fintech startup also offers payment options designed to help merchants scale up their businesses.
The company mentioned in a stock exchange filing that the nomination and remuneration committee of the board allowed the allocation of 1,10,357 equity shares at an issue price of Rs 1 each, as they were fully paid up under the company’s employee stock option scheme.
The allocated shares will be exercised upon vested options under the Employee Stock Option Scheme 2019. The ESOPs are provided to employees, and this company stock can be encashed after a specific duration at a pre-determined value. The main reason behind the expansion of the employee stock option plan is to find new talent, gain new employees, and enhance productivity. After the allotment of issued, subscribed, and paid-up equity shares increased to 63.63 crore. The exercise price share for stock options under this new allotment is at Rs 9 per premium of Rs 8 each piece.
Inc42 mentioned that Paytm’s ESOP 2019 scheme allowed the allotment of 6,000 shares last month. A week before this allotment, the firm announced an additional 2.81 lakh shares under its Employee stock options plan for 2019 in July. This year, many companies have expanded their ESOP pool size.
Nykka expanded its ESOP after mass suspension to re-create its employee brand. This development came after the fintech major saw a 15 to 20 percent decline in its workforce. The fintech startup reported a 124 percent increase in a net loss of Rs 840.1 crore for the first quarter of FY25. The operational revenue showed a 36 percent decrease to Rs 1,502 crore during the same period.
The company has been dealing with regulatory setbacks and other internal challenges, such as fines due to not following some regulations. The board issued a resolution to grant the newly allocated stock options to those under the Paytm employee stock option scheme. Many startups announced their ESOP pool expansion programs to offer liquidity to employees, including Yubi, iDeaForge, Jupiter, Delhivery, and Purplle.
Conclusion
Digital payment platform Paytm announced its plan to expand its employee stock option Plan for the fourth time by allocating 1,10,357 equity shares to its employees. These newly allocated shares are worth around Rs 5.4 crore. The ESOPs will help Paytm to decrease its losses while gaining new employees and enhancing its productivity. By providing ESOP to employees with the company stock, its employees can encash it after a specific duration at a predetermined value. This fintech startup offers a digital payment platform to provide a secure and easy transaction to its users. The company reported a net loss of Rs 840 crore for the first quarter of FY25.
Disclaimer – We have collected this information from various trustworthy sources on the Internet, and the facts have been checked manually and verified by our In House team.
