Paytm India’s digital payment sector has announced, on July 6, 2023, the issuance of equity shares as part of its employee stock option plan (ESOP). According to the regulatory filings, a total of 51,619 equity shares have been allotted to the employees.
Out of the total allotment, 47,837 equity shares were granted under the employee stock option plan 2019, while 3,782 equity shares were granted under the employee stock option plan 2008. These plans enable eligible employees to acquire company shares at a predetermined price, often at a discount, thereby allowing them to share in the company’s success.
The face value of each equity share is Rs 1. The face value represents the nominal value of a share, and in this case, it is set at Rs 1. It serves as a base value for the calculation of the company’s capital and determines the ownership percentage held by the shareholders.
With the allotment of these additional equity shares, the paid-up equity share capital of Paytm has increased from Rs 634,178,681 to Rs 634,230,300. Paid-up capital refers to the portion of the company’s authorised capital that has been issued and paid for by shareholders. This increase in paid-up capital indicates the expansion of the company’s ownership base and the potential for further growth and investment.
Paytm’s decision to provide equity shares as part of its compensation package showcases the company’s commitment to nurturing a culture of ownership and rewarding its employees. Such initiatives can enhance employee loyalty, engagement, and long-term commitment to the organisation’s goals and objectives.