Fintech firm Paytm approves allotment of 2.8 lakh ESOP shares to employees

Vijay Shekhar Sharma-led fintech major Paytm has announced the approval of the allotment of 2.8 lakh Employee Stock Option Plan (ESOP) shares to its employees.

The decision was made by Paytm’s Nomination and Remuneration Committee and disclosed to the stock exchanges on July 7, 2024.

The breakdown of the shares includes 2,78,858 shares under the 2019 ESOP and 2,536 shares under the 2008 ESOP.

Increase in equity share capital

Following the allotment, Paytm’s total issued, subscribed, and paid-up equity share capital has increased from Rs 635,992,696 to Rs 636,274,090. Each share has a face value of Re 1.

The exercise price per share was set at Rs 9, including a premium of Rs 8. This move indicates a strategic investment in human capital, aiming to reward and retain key talent within the company.

Why is Paytm expanding its ESOP pool?

The expansion of the ESOP pool is part of Paytm’s strategy to attract, motivate, and retain top talent. ESOPs give employees the right to purchase company shares at a predetermined price, which is usually below market value.

The move aligns the interests of employees with those of shareholders, encouraging them to contribute to the company's success. According to Paytm, this initiative is crucial for maintaining a motivated workforce that drives innovation and growth in the competitive digital payments sector.

.