Fintech

Paytm Approves Allotment of 2.8 Lakh ESOP Shares to Employees

• ByStartupStory     |    July 8, 2024

One97 Communications, the parent company of Paytm, has announced that its Nomination and Remuneration Committee has approved the allotment of 2,81,394 equity shares to eligible employees under the company’s Employee Stock Option Scheme (ESOP). The announcement was made on July 7, 2024, through a notification to the stock exchanges.

The breakdown of the allotment includes 2,78,858 shares under the 2019 ESOP and 2,536 shares under the 2008 ESOP. As a result of this allotment, Paytm’s total issued, subscribed, and paid-up equity share capital has increased from Rs 635,992,696 to Rs 636,274,090, with each share having a face value of Re 1.

The exercise price per share was Rs 9, which includes a premium of Rs 8. Following this announcement, shares of One97 Communications saw a significant rise of nearly 8.5%, reaching Rs 474 per share. This positive movement comes as the fintech giant’s shares gradually consolidate after hitting a 52-week low due to sanctions imposed by the Reserve Bank of India on Paytm Payments Bank.

In related news, Zomato, another prominent player in the tech industry, recently secured majority approval for its ESOP expansion plan. Despite nearly a fourth of investors opposing the motion, the foodtech giant revealed in its quarterly earnings statement plans to establish an ESOP pool of 18.26 crore employee stock options, representing about 2% of its outstanding share capital on a fully diluted basis. With a closing share price of Rs 208, the value of these ESOPs is estimated to be around Rs 3,800 crore.

Zomato has also disclosed that it is in advanced discussions with Paytm regarding the acquisition of the latter’s events and ticketing business. This potential acquisition marks a strategic move for Zomato as it continues to expand its market presence and service offerings.

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