Paytm increases ESOP pool as share price continues to plummet

Payments major Paytm’s parent company One97 Communications has increased its Employee Stock Option Plan (ESOPs) to the employees even as the share prices of the company continues to fall.

Paytm, however, hasn’t disclosed the number of employees who have been granted the new ESOPs. The company said that it has granted 3.97 million stock options to the eligible employees. Each stock option is convertible into one fully paid these options up equity share having face value of Rs 1 each.

The company said that the exercise price of these stock options is Rs 9 each.

In another stock exchange filing, Paytm said that it has also allotted 1.7 lakh equity shares to its employees.

“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),” the company said.

Meanwhile on BSE, Paytm was trading at Rs 555.8 per piece on Monday, a 2.17 per cent decline from previous close. Paytm’s market capitalization has also seen a free fall with over Rs 36000 crore (or over $5 billion) market cap now, a substantial decline from its massive $16 billion valuation when it listed on stock exchanges last year in November.

Prior to this, Paytm had granted 10.1 lakh equity shares to the employees who had exercised their stock options in August last year ahead of its public listing. In September, the company doubled its ESOP pool to 61.09 million stock options, with a majority being owned by the company CEO, Vijay Shekhar Sharma.