One 97 Communications Ltd, the parent company of fintech platform Paytm, has approved the allocation of 1,04,400 fresh stock options to eligible employees under its ESOPs (Employee Stock Option Scheme) 2019. The announcement was made on May 6, 2025, following a meeting held by the company’s Nomination and Remuneration Committee.
Paytm New ESOPs For Employee Motivation
Each of the newly granted options allows employees to purchase one fully paid-up equity share with a face value of Re 1. The exercise price for these options has been set at Rs 9 per share. Considering the current market value of Paytm shares, this grant is estimated to be worth around Rs 8.6 crore. The move is seen as a way to motivate key employees, enhance retention, and align individual performance with the company’s long-term vision.
Alongside the new grants, the committee also reported the lapse and cancellation of 6,60,284 stock options under the same ESOP 2019 scheme. This includes 2,24,685 options that were voluntarily surrendered and cancelled by employees, while 4,35,599 options lapsed due to expiry or ineligibility based on the plan’s terms.
ESOP Complies with SEBI Regulations
The ESOP 2019 scheme operates in line with the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations of 2021. It permits employees to exercise their stock options during their active employment period after they become vested. The plan also contains specific guidelines in cases such as resignation, retirement, termination, or other exceptional circumstances, offering fair provisions for both the company and the employees involved.
The announcement of new stock options comes just hours before Paytm is set to release its financial results for the fourth quarter of FY25. In the previous quarter, Q3 FY25, Paytm reported a revenue of Rs 1,828 crore but continued to face losses, with a net loss of Rs 208 crore. Investors and analysts are closely watching the Q4 earnings report to assess the company’s financial performance and strategic direction.
By granting new ESOPs and managing lapses in existing ones, Paytm is clearly focusing on creating a committed and performance-driven workforce. These efforts signal the company’s intent to navigate challenges and build long-term shareholder and employee value.
