Under its employee stock option plan (ESOP), the fintech behemoth PaytmPaytm Datalabs in-article-icon has granted 2.54 lakh equity shares to qualified workers. Paytm stated in an exchange statement on Wednesday, September 4, that the nominating and compensation committee of the board had approved the distribution of 2.54 lakh fully paid-up equity shares, each with a face value of INR 1. 620 shares were distributed under the Employee Stock Option Scheme 2008 and 2,54,288 shares under the Employee Stock Option Scheme 2019.
With the new issuance, Paytm’s issued, subscribed, and paid-up equity share capital has grown to INR 63.66 Cr from INR 63.63 Cr before. Based on Paytm’s most recent closing price, the newly allocated shares are worth INR 5.65 crore. The allocated shares have an exercise price of INR 9 each. This trend occurs at a time when some publicly traded new-age digital businesses have started awarding equity shares to staff members through employee stock ownership plans, or ESOPs.
Honasa, the parent company of Mamaearth, authorized the distribution of 5,79,849 equity shares to its staff members under their ESOP plans on Tuesday. The massive food tech company Zomato distributed 38.72 lakh equity shares last week. Nykaa has already allocated 1.73 lakh equity shares.Paytm is facing significant challenges following the Reserve Bank of India’s regulatory crackdown on Paytm Payments Bank. The company’s financial situation has deteriorated since the central bank’s intervention.
Net loss for Paytm has more than quadrupled from INR 358.4 Cr in the same quarter last year to INR 840.1 Cr in Q1 FY25. Operating revenue also experienced a substantial decline, dropping by 36% from INR 2,342 Cr in Q1 FY24 to INR 1,502 Cr in Q1 FY25.
To refocus on its core payments and financial services distribution business, Paytm recently offloaded its entertainment and ticketing division to Zomato for INR 2,048 Cr.
Paytm has obtained official approval for its investment in Paytm Payment Services Limited, its payments division, which is a significant relief. Subsequently, the company will be able to proceed with applying for a license to operate as an aggregator. Additionally, Paytm shares concluded today’s trading session on the BSE with a 3.11% increase, closing at INR 614.10.
