Paytm’s parent company, One97 Communications, has made headlines by allotting 2.44 lakh equity shares to its employees under its Employee Stock Ownership Plans (ESOPs). This move highlights the company’s commitment to incentivizing its workforce and aligning employee interests with its broader growth strategy.
Details of the Equity Share Allotment
In an exchange filing, Paytm announced the approval of 2,44,801 equity shares with a face value of INR 1 each. Of these, 2,42,795 shares were allotted under the ESOP 2019 scheme, while 2,006 shares were issued under the ESOP 2008 scheme.
As a result of this allocation, Paytm’s issued and paid-up equity share capital increased from INR 63.71 crore to INR 63.73 crore. Based on the stock’s closing price of INR 956.5 on December 5, the newly allotted shares are valued at approximately INR 23.41 crore.
An Increasing Trend in ESOPs
This allotment is part of a series of recent initiatives by Paytm to reward its employees through stock options. In November 2024, the fintech giant granted 4 lakh stock options, following an expansion of its ESOP pool by 4.81 lakh stock options in October.
The company’s ESOP programs are designed to motivate employees by giving them a stake in the company’s growth. This approach has become increasingly common among tech companies as a way to attract and retain top talent in a competitive market.
Positive Momentum in Paytm’s Stock Performance
Paytm shares have been experiencing a notable upward trend. On December 5, the stock closed 1.8% higher at INR 956.5 on the Bombay Stock Exchange (BSE), following a recent surge that saw it hit a new 52-week high of INR 951.90.
Brokerage firms have responded positively to Paytm’s financial performance and growth strategies. UBS raised its price target for the company to INR 1,000 from INR 490, while Bernstein also increased its target to INR 1,000 from the previous INR 750.
Financial Highlights and Recent Developments
In the September quarter (Q2 FY25), Paytm reported a consolidated profit after tax (PAT) of INR 930 crore, marking a significant turnaround from the INR 292 crore loss recorded in Q2 FY24. However, this profit was largely attributed to a one-time exceptional gain of INR 1,345 crore from the sale of its entertainment ticketing business.
On the operational front, revenue dropped 34% year-on-year to INR 1,660 crore, down from INR 2,519 crore in Q2 FY24. Despite this decline, the company continues to focus on scaling its core businesses and introducing innovative solutions.
One such innovation is Paytm’s new Unified Payments Interface (UPI) offering, UPI Lite. This feature allows users to set up automatic top-ups for daily transactions under INR 500 without requiring a PIN, catering to the growing demand for seamless digital payment solutions.
A Strategic Focus on Growth
Paytm’s recent initiatives reflect its dual focus on employee engagement and technological innovation. The company’s ESOP schemes underscore its commitment to rewarding and retaining top talent, while its strategic financial and operational moves aim to drive long-term growth.
With analysts optimistic about Paytm’s future and the company actively expanding its offerings, the fintech leader is poised to remain a key player in India’s digital payments landscape.
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