Paytm allots shares to 166 former and current employees ahead of IPO

By Tarush Bhalla

  • 24 Aug 2021
Credit: Reuters

One97 Communications Ltd, which owns digital payment platform Paytm, has allotted shares to 166 former and current employees before its public listing, according to the company's filings with the ministry of corporate affairs.  

As a part of the exercise, 10.11 lakh equity shares have been allotted to these individuals. The list includes ex-Paytm president Amit Nayyar who quit ahead of the listing in June. He has been allotted 1.16 lakh shares at an exercise price of Rs 10.50 lakh. 

The allotment comes at a time when Paytm is planning to alter One97 Employee Stock Option Scheme 2019 by more than doubling its ESOP pool of 24,094,280 equity options.

The company is expected to seek shareholders’ approval on the changes to its ESOP pool in the upcoming extra-ordinary general meeting (EGM) on September 2. 

“At present, there would be roughly 1,000 employees at Paytm who have vested ESOPs in the company with approximately 1.4 crore options vested,” said a person aware of the company discussions, on the condition of anonymity.  

Mint had earlier reported that Paytm was also in talks with five lenders to help employees borrow money to exercise their stock options before the company’s much-awaited initial public offering. 

Paytm is expected to facilitate a loan size of around Rs 100 crore towards this end, helping 300-500 employees who hold stock options.

It is expected to list on Indian exchanges by November.