Crisis-hit Paytm expands ESOP pool with 280k stock options for staff

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The shares would be allotted under the Employee Stock Option Scheme 2019 and the Employee Stock Option Scheme 2008.

2 min read Last Updated : Jul 09 2024 | 9:52 AM IST

Fintech major Paytm, owned by One97 Communications, announced the expansion of its employee stock option plan (ESOP) pool by allocating 281,394 equity shares to its staff, a move that is generally aimed at retaining talent.

According to a stock exchange filing of July 7, Paytm said it approved the allotment of 281,394 equity shares having a face value of Rs 1 each, as fully paid-up, to the eligible employees.


The shares would be allotted under the Employee Stock Option Scheme 2019 and the Employee Stock Option Scheme 2008, the company report said.


The development would make Paytm’s issued, subscribed and paid-up equity share capital at Rs 636,274,090 (consisting of 636,274,090 equity shares of face value of Rs 1 each), it said.


How do ESOPs work?


An Employee Stock Option Scheme (ESOS) is a plan that allows companies to grant employees the right to purchase a specified number of shares in the company at a predetermined price, which is below market levels. The move benefits the employees as they get to own shares in the company, potentially driving their commitment to the firm.


Paytm may layoff more employees in FY25


Paytm’s move comes amid reports that the fintech company, which is facing regulatory setbacks, may announce more layoffs in the current financial year. According to a report by The Financial Express in May, Paytm may plan to reduce its workforce by around 15-20 per cent as it struggles to deal with losses.


The digital payments firm reported a consolidated loss of Rs 549.6 crore in the fourth quarter (Q4) of 2023-24, a substantial increase compared to the previous quarter, for which the company blamed ‘temporary disruptions in business operations’.


In January, the Reserve Bank of India imposed business restrictions on its affiliated business – Paytm Payments Banks, leading to a meltdown of its financial and operational services.

First Published: Jul 09 2024 | 9:42 AM IST