By Administrator_India
IPO bound Paytm that granted new employee stock options (ESOPs) to its current and former staff were converted to shares worth Rs 182 crore, The Economic Times reported citing a regulatory filing.
Over a million ESOPs were granted mostly to senior staff members at the price of Rs 9. Based on Paytm’s last valuation of $16 billion (about Rs 1.2 lakh crore), the ESOPs converted were worth Rs 182 crores, the report added.
Moneycontrol could not independently verify the report.
The platform offers payment instruments such as wallet, sub wallets and prepaid card, savings account, current account, debit cards, FASTag, National Common Mobility Card, and UPI, which are issued or opened by Paytm Payments Bank, and Paytm Postpaid (BNPL), credit cards, among others, issued by its financial partners.
Paytm filed its draft prospectus last month, according to which in consumer to merchant transactions it has a 40 percent market share. On the other hand, the company claims to have 65-70 percent market share in the consumer to merchant wallet transactions.
“Paytm shares were last valued at Rs 18,000 apiece. Now after the 1:10 stock split, it would be Rs 1,800 per share,” one source told the publication. This means that the employee will get 10 shares upon conversion of one ESOP.
Moreover, the company has plans to expand the ESOP pool with 3.7 crore shares, taking the total pool to 6.10 crore, at the upcoming extraordinary general meeting on September 2.
Paytm had clocked revenue of Rs 3,186 crore for FY 20-21 vs Rs 3,540 crore in the previous year. It narrowed losses to Rs 1,701 crore during the same period from Rs 2,942 crore in the previous year.
Paytm is currently India’s second most-valuable internet company, last valued at $16 billion when it raised a billion dollars in November 2019 led by T Rowe Price, Discovery Capital and D1 Capital.
