Paytm, one of India’s leading fintech platforms, has announced a new allocation of ESOPs (Employee Stock Options) valued at around Rs 215 crore. The allotment is part of the ESOP 2019 scheme, according to a recent regulatory filing made by its parent company, One97 Communications. This move reinforces the company’s long-term focus on retaining and rewarding key employees.
The new grant includes 23,70,790 stock options, each offered at an exercise price of Rs 9 per share. This price is significantly lower than Paytm’s current market value, which stands at Rs 906 per share. At market rate, this makes the total grant worth roughly Rs 215 crore.
No Lock-In Period
Each granted option allows the employee to receive one fully paid equity share with a face value of Rs 1. These shares will not be subject to any lock-in period once exercised. Employees are allowed to exercise these options during their active employment with Paytm, after completing the required vesting period.
The ESOP 2019 scheme also includes guidelines for handling special cases like resignation, retirement, termination, or disability. If employees leave under certain conditions, their options may lapse or be partially retained depending on the scheme’s rules.
Options and Adjustments
As per the filing, 3,46,746 options have already lapsed due to various reasons specified in the plan. The company has also detailed how these stock options can be adjusted in the event of corporate actions like stock splits, mergers, bonus issues, or divestments. These adjustments will be made fairly to maintain balance between employee and shareholder interests.
This large-scale ESOP issuance shows how Paytm is using equity-based incentives to motivate and retain talent in a competitive tech industry. The ESOP 2019 plan, which was approved by the board and shareholders earlier, remains a key part of the company’s strategy to align employee goals with overall business growth.
Strategic Talent Retention
The new ESOP grants reflect a broader trend among Indian tech companies, where employee ownership is used as a powerful tool for engagement and long-term value creation. By offering shares at a low exercise price, Paytm is ensuring that employees have strong incentives to stay and contribute to the company’s continued success.
This move is expected to boost morale, strengthen retention, and deepen employee alignment with shareholder returns as Paytm focuses on its long-term growth trajectory.
