One 97 Communications, the parent entity of Paytm has granted 27,687 shares to its employees. The company made the announcement in a regulatory filing on 2 Oct. 2023. Each of the shares will have a face value of Re 1.
The filing revealed that a total of 3,029 shares were issued as part of the Employee Stock Option Plan 2008, while the remaining 24,658 shares were distributed under the Employee Stock Option Plan 2019.
This allocation is said to be carried out following approval from the Nomination and Remuneration Committee of One 97 Communications’ Board.
After the distribution of shares, the company’s issued, subscribed and fully paid-up equity share capital rose to 63,43,97,553, which is made up of 63,43,97,553 shares. This represents an increase from the previous figure of 63,43,69,866 shares, each with a face value of Re 1.
Employee Stock Ownership Plans (ESOP) are corporate programmes that grant employees ownership in the company. Companies allocate shares or stock options to employees, often at a discount, as part of their compensation.
These shares vest over time, incentivising employee loyalty. Once vested, employees can exercise their options, purchasing company stock at a predetermined price. This ownership grants employees voting rights and potential dividends.
Paytm, is an Indian fintech company headquartered in Noida, India. Founded in 2010 by Vijay Shekhar Sharma, it has emerged as a leading digital payment platform in India. It offers a wide range of services, including mobile recharge, bill payments, digital wallets, online shopping, and financial services like Paytm Payments Bank. Paytm has also expanded its presence in e-commerce, digital banking, and other financial technology sectors.