Just before releasing its quarterly financial results for Q1 FY24, One97 Communications, the parent company of digital payments company Paytm, has granted new ESOP options to its employees.
The company has granted 17,06,829 stock options under ‘One 97 Employees Stock Option Scheme 2019’ to eligible employees, the company made a disclosure on a stock exchange filing. The company has set the exercise price of these stock options at Rs 9 each.
The company did not disclose the number of employees who will be eligible for this grant, However, each stock option granted under this scheme will be converted into one fully paid equity share in future.
Paytm further clarified that the scheme also provides for the manner in which options would be dealt with in case of death, permanent incapacity, resignation, termination, retirement, and abandonment.
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“The equity shares allotted, pursuant to the exercise of the stock options, would not be subject to lock-in,” the filing further states.
As per Fintrackr’s estimates, the value of new ESOPs granted by One97 Communications stood at around Rs 145 crore, as per the company’s stock prices at the moment.
One97 Communications also canceled 53,250 stock options in accordance with the terms and conditions of ESOP 2019, the filing further added.
In May 2022, Paytm granted stock options worth Rs 222 crore under its ESOP plan to its employees. During FY23, Paytm registered a significant growth of 60.6% and crossed Rs 7,990 crore in revenue. Its losses also dwindled 25.9% to Rs 1,776 crore during the last fiscal year.
