Paytm is a digital payment platform that expanded its Employee Stock Option Plan by offering its employees more than 2,54,288 equity shares. These newly allocated shares are worth Rs 5.65 crore. The Fintech company provides different financial service options and a secure platform to make seamless and easy transactions. The startup also offers payment options 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 2,54,288 equity shares at an issue price of Rs 1 each as fully paid to the eligible employees under the company’s employee stock option scheme. The equity shares will be exercised upon vested options under the Employee Stock Option Scheme 2019. This is the company’s fifth time to expand its employee stock option plan in the last few months. This helps the company to find new talent, enhance productivity, and gain new employees. After the allotment of issued, subscribed, and paid-up equity shares increased to 63.66 crore. The exercise price share for the allotted stock options under this scheme is Rs 9 per share.
Inc42 mentioned that under Paytm’s ESOP 2019 scheme, 2.54 shares were allotted while 620 shares were issued under the employee stock option scheme 2008. Earlier, this year the firm announced an additional 2.81 lakh shares under its employee stock options plan for 2019. This year, many companies have expanded their ESOP pool size including Honsana. The parent company of Mamaearth, Honsana expanded its ESOP by allotting 5,79,849 equity shares. Foodtech major Zomato recently allotted 38.72 lakh equity shares. The development came when various startups announced the allocation of new equity shares to their ESOP pool under their ESOP plans.
The startup reported a two-times increase in net loss to Rs 840.1 crore in the first quarter of FY25. However, the operational revenue decreased by 36 percent to Rs 1,502 crore in the same duration. After, the announcement of the additional allocation of equity shares in ESOP pool size the company’s shares traded 3.11 percent higher in BSE at Rs 614.10. The board approved a resolution to grant the newly allocated stock options to those eligible employees under the Paytm employee stock option scheme. The company faces competition from other fintech platforms including PhonPe, and MoneyGram.
Conclusion:
An online payment platform Paytm announced its plan to expand its employee stock option Plan for the fifth time by allocating 1,10,357 equity shares to its employees. These newly allocated shares are worth around Rs 5.65 crore. The ESOP pool expansion will help the firm minimize its losses and gain new employees while improving its platform capability. The newly allocated 2.54 stock options were provided under the ESOP scheme 2019 with 650 shares under the ESOP 2008 scheme. Paytm provides a digital payment platform for a secure and easy transaction process. The startup reported a net loss of Rs 840.1 crore with operational revenue of Rs 1,502 crore in the first quarter of FY25.
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