Paytm Launches New ESOP Grants Worth Rs 215 Crore

Paytm, the leading fintech company, has introduced new employee stock option (ESOP) grants amounting to Rs 215 crore. Operated by One97 Communications, Paytm has allocated 23.7 lakh stock options under its ESOP 2019 initiative, as reported by NSE. Given the current market value of Rs 906 per share, the total grant’s approximate valuation aligns with Rs 215 crore.

Context of Recent Developments

This announcement follows closely after Vijay Shekhar Sharma, the Managing Director and Chief Executive Officer of One97 Communications, voluntarily relinquished 2.1 crore shares, which are valued at about Rs 1,800 crore. Furthermore, last month, Ant Group, the financial subsidiary of Alibaba, divested approximately a 4% interest in One97 Communications for Rs 2,103 crore (roughly $246 million).

Details of the Stock Options

According to the latest disclosure, the stock options feature an exercise price set at Rs 9 each. Each option, once it has vested, can be converted into a single fully paid equity share. Additionally, Paytm has stated that 3,46,746 options expired in the current ESOP 2019 plan.

Financial Performance of Paytm

In the last financial quarter, Paytm experienced a 16% decline in revenue year-on-year, reaching Rs 1,911 crore while managing to cut losses by 96% to Rs 23 crore during the same period. For the complete fiscal year, revenue was reported at Rs 6,900 crore, with losses amounting to Rs 663 crore.

Mobikwik’s ESOP Grants

In a related development, Mobikwik has issued 3.27 lakh stock options to eligible employees under its 2014 ESOP Plan. This grant is estimated to be worth around Rs 9 crore, based on Mobikwik’s present share price of Rs 276. In the last quarter of FY25, Mobikwik reported revenues of Rs 268 crore alongside a loss of Rs 56 crore. For the entire fiscal year, their revenue was recorded at Rs 1,192 crore, with losses tallying Rs 121 crore.