Paytm amends ESOP policy, expands pool with grant of 109,995 stock options

One97 Communications, the operator of the Paytm brand, approved amendments to its Employee Stock Option Scheme (ESOP) on Tuesday, linking ESOP vesting to annual performance ratings from the latest appraisal exercise.

 

Other amendments included modifying the vesting schedule for future grants from the previous five-year limit to a range of one to five years from the grant date.

 

“These amendments, inter alia, reinforce performance-linked rewards and long-term value creation, aligning with the company’s vision of recognising contributions, driving sustainable growth, and are in line with industry practices,” the company said in a statement.

 

Paytm expanded its ESOP pool with the grant of 1,09,995 stock options. It disclosed that 4.1 lakh stock options have lapsed.

 

It said that these stock options can be exercised anytime during the entire period of continuous active employment from the date of vesting of the respective options.

 

Last week, the company’s board approved the allotment of 84,793 equity shares.

 

Earlier this month, the company received a show-cause notice from the Enforcement Directorate (ED) for alleged violations of the Foreign Exchange Management Act (Fema) involving aggregate transactions worth over Rs 611 crore related to the acquisition of its subsidiaries.

 

The alleged violations pertain to the company’s acquisition of two subsidiaries—Little Internet Private Limited (LIPL) and Nearbuy India Private Limited (NIPL), formerly Groupon—including certain directors and officers.

 

Paytm narrowed its losses to Rs 208.3 crore in the third quarter of financial year 2025 (Q3FY25), down from Rs 219.8 crore in Q3FY24.

 

The Noida-based company’s revenue declined 35.9 per cent to Rs 1,827.8 crore in the quarter from Rs 2,850.5 crore in the corresponding quarter last year. Sequentially, revenue rose 10.1 per cent from Rs 1,659.5 crore in Q2FY25.