Paytm grants new Esops to staff amidst falling stock price
In a stock exchange filing on Monday, One97 Communications Ltd., which runs the digital payments firm Paytm, said that it has granted 3.97 million new stock options to employees, under One97 Employees Stock Option Scheme 2019 (‘Esop 2019’).
The exercise price of these stock options is Rs 9 each, the company informed the exchanges.
One97 Communications’ stock was trading at Rs 559.8 apiece in Monday morning trade, down 1.47% since market close on May 6. Since listing in November last year, the One97 stock has been pummelled, it’s down 74% from its IPO price of Rs 2,150 per share.
In addition, it has also allotted 177,114 equity shares to employees, who have exercised their options. One97 did not disclose the individuals who have been granted these stock options in its filings.
“Consequent to aforesaid allotment, the issued, subscribed and paid-up equity share capital of the company stand increased from approximately 64,85,67,292 (consisting of 64,85,67,292 equity shares of face value of Rs 1 each) to approximately 64,87,44,406 (consisting of 64,87,44,406 equity shares of face value of Rs 1 each),” said Paytm in its filing.
Before its public market listing in November last year, Paytm granted new Esops to 166 former and current employees, which were then converted into shares of the company, regulatory filings showed.
This included President Amit Nayyar, who was heading the financial services division at the Noida-based fintech startup. Nayyar resigned in June 2021. Cumulatively, over a million Esops were granted to mostly senior staff members, at an exercise price of Rs 9 each.
Subsequently, in September last year, Paytm had more than doubled its Esop pool from 24.09 million equity options to 61.09 million options, regulatory filings showed. Last year before the company’s listing, roughly 1,000 Paytm employees had vested 14 million stock options.
In April, the Paytm founder, Vijay Shekhar Sharma said in a letter to company shareholders that his stock grants will vest only after Paytm’s shares crossed the IPO price on a sustained basis.