PayTM Expands ESOPs, Allots 1,10,357 Equity Shares To Employees

In its fourth Employee Stock Option Plan (ESOP) offering this year, fintech giant Paytm has announced the allotment of 1,10,357 equity shares to its eligible employees.

In a filing to the exchange, Paytm disclosed that the Nomination and Remuneration Committee of its Board approved the allotment on August 5, 2024. Each share, having a face value of Rs 1, was allotted at an exercise price of Rs 9, including a premium of Rs 8 per share. As a result of this allotment, the company's issued, subscribed, and paid-up equity shares have increased to 63,63,84,447 from 63,62,74,090 shares.

Based on Paytm’s closing price of Rs 487.25 on the BSE, the newly allotted stock options amount to over Rs 5.37 crore. This latest ESOP allotment follows similar offerings in recent months, including 6,000 shares in July and 2,81,394 shares in June. In May, 87,373 stock options were granted under the same ESOP plan.

Despite these efforts to retain and incentivise its workforce, Paytm has faced multiple challenges, including reports of a potential 15-20 per cent workforce reduction this fiscal year. 

Moreover, some employees have approached the Ministry of Labour and Employment, alleging unlawful terminations without due compensation. The ESOP expansion is seen as a strategic move to mitigate the impact of these challenges, helping to enhance productivity, retain talent, and attract new hires.

On the financial front, Paytm reported a consolidated net loss of Rs 840 crore in the first quarter of the financial year 2024-25, a 134 per cent increase year-on-year from Rs 358 crore. Revenue from operations also declined by 36 per cent to Rs 1,502 crore, compared to Rs 2,342 crore in the corresponding quarter of the previous year. Despite these setbacks, Paytm remains committed to its employees and future growth, as demonstrated by this ongoing ESOP program.