Paytm allots over 1.36L equity shares under ESOP plan
What's the story
One97 Communications, the parent company of Indian fintech giant Paytm, has issued 1,36,528 equity shares to qualifying employees under its employee stock option plan (ESOP).
The decision was approved by the Nomination and Remuneration Committee.
According to a BSE filing, this move has raised the firm's issued, subscribed, and paid-up equity share capital from ₹63.75 crore to ₹63.76 crore.
Past allocations
Paytm's ESOP expansion: A look at previous allotments
The latest allotment of equity shares comes just a month after a similar expansion of Paytm's ESOP in January.
Back then, the company had added 2,03,137 stock options to the pool at a face value of ₹1 per share and exercise price of ₹9 per stock option.
The total valuation of these options was around ₹18.27 crore, according to the company's stock price then.
Financials
Financial performance and recent regulatory challenges
In Q2 FY24, Paytm posted a profit of ₹930 crore, a major recovery from the ₹840.1 crore loss in the last quarter.
The company's revenue from operations also increased by 10.51%, amounting to ₹1,659.5 crore in Q2 FY24 as opposed to ₹1,501.6 crore in Q1 FY24.
However, it recently faced a regulatory hurdle when the Central Goods and Services Tax (CGST) Department fined it ₹1.19 crore for alleged tax violations.
Business move
Singapore subsidiary sells stock acquisition rights
In a recent business move, Paytm's Singapore-based subsidiary sold its stock acquisition rights in Japan's PayPay to SoftBank Vision Fund 2 for $279.2 million.
The transaction is part of the company's broader strategy and comes on the heels of its trend of issuing equity shares under its ESOP program.
In December 2024, One97 Communications had also issued 2,44,801 fully paid-up equity shares under this initiative.