One97 Communications, the parent company of fintech giant Paytm, has issued 2.44 lakh equity shares to eligible employees as part of its various Employee Stock Ownership Plans (ESOPs), as per Inc42. Following this announcement, made by the company in an exchange filing, its issued and paid-up equity share capital has increased to around Rs 63.73 crore from Rs 63.71 crore.
“… the nomination and remuneration committee of the board of the company, at its meeting held today i.e., December 05, 2024, has approved the allotment of 2,44,801 equity shares having face value of INR 1 each, as fully paid-up, to the eligible employees, upon exercise of vested options,” Paytm said.
Out of the total shares, 2,42,795 shares were issued under the ESOP 2019 scheme, while the remaining 2,006 shares were allotted under the ESOP 2008 scheme, as per the report.
Earlier this, Paytm granted 4 lakh stock options to its employees in November and 4.81 lakh stock options in October.
One97 Communications' shares are currently performing strongly, hitting a 52-week high of Rs 967.10 during Thursday's trading session on the Bombay Stock Exchange (BSE). Projecting a sharp recovery after significant regulatory challenges earlier this year, Paytm surged 185 per cent in the span of the last six months.
This stock surge is expected due to Paytm's resolved regulatory uncertainties which also include approvals for foreign direct investment into its subsidiary and progress in securing a payment aggregator license.
Paytm recently introduced a new Unified Payments Interface (UPI) feature called UPI Lite, enabling users to set up automatic top-ups for daily payments under Rs 500 without the need for a PIN.
In November, international brokerage UBS Securities raised its price target for Paytm by more than double to Rs 1,000 from Rs 490, citing significant improvements. Despite the increased target, the New York based firm maintained a 'Neutral' rating on the stock.
Recently, quick commerce platform Zomato also approved the allotment of 47.75 crore equity shares under multiple ESOP schemes to Foodie Bay Employees ESOP Trust, as per reports. The allotment will increase the share capital of the company from Rs 917.28 crore to 965.03 crore.
Likewise, Axis Bank also allotted 1.15 lakh equity shares under its ESOP.
