One 97 Communications Ltd (Paytm) shares were trading 5 per cent higher in Tuesday's trade amid high turnover today, even the broader market was weak, with three stocks falling on BSE for every two that rose.
Paytm told stock exchanges that the nomination and remuneration committee of the board of the company at its meeting today approved the grant of 109,995 stock options to the eligible employees under One 97 Employees Stock Option Scheme 2019 (ESOP 2019). It also took note of 4,11,931 lapsed stock options.
The stock was trading 5.34 per cent higher at Rs 700.70 on BSE. It hit a high of Rs 700 on NSE. The counter saw 62,26,150 shares changed hands on NSE, with a turnover of Rs 427.60 crore so far.
Recently, the Paytm stock was in news after the company informed BSE and NSE that it has received a Rs 611.17 crore show cause notice from the Directorate of Enforcement in relation to alleged contraventions of certain provisions of the Foreign Exchange Management Act, 1999 (FEMA) by the online payment service provider. It insisted that the alleged contraventions relate to certain investment transactions relating to OCL, LIPL and NIPL. The case pertained to acquisition of two subsidiaries namely Little Internet Private Limited (LIPL) and Nearbuy India Private Limited (NIPL) -- erstwhile Groupon, along with certain Directors & Officers, for the years 2015 to 2019.
"Certain alleged contraventions attributable to two acquired companies - Little Internet Pvt Limited and NearBuy India Pvt Ltd pertain to a period when these were not subsidiaries of the company," Paytm noted adding there is no impact of the matter on Paytm’s services to its consumers and merchants, and all of its services are fully operational.
Last month, Paytm told Kotak Institutional Equities that its primary focus was on payments and upselling of financial services to payment customers. The company processed a GMP of Rs 5 lakh crore from consumers to merchants every quarter through UPI and cards. Of this, 80 per cent is processed through UPI, which has significantly cannibalized debit card usage, while the remaining 20 per cent is processed through credit cards.
The market share of payment devices in the offline segment, Paytm said, is at a 90 per cent sound box and 10 per cent card machines. On the Rs 5 lakh crore of GMP, net of payment to the bank by Paytm, 5-6 bps of the transaction is received as revenue. A dollar a month is the revenue accrued from each merchant for the soundbox. The government incentive is the only income for UPI.
Meanwhile, Paytm today said its remuneration Committee considered and approved amendments in One 97 Employees Stock Option Scheme 2019, subject to the approval of the members of the company, in compliance with applicable provisions of the Companies Act, 2013 read with rules thereunder and the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021.
"These amendments, inter alia, reinforce performance-linked rewards and long-term value creation, aligning with the Company’s vision of recognizing contributions, driving sustainable growth and are in line with industry practices," it said.