Paytm's ESOP resolutions receive full approval from shareholders

New-age technology companies world over invest a considerable sum in hiring and retaining valuable talent with ESOPs being the most preferred route. ESOPs are granted to key employees in order to reward and retain them and to create a sense of ownership and participation amongst them. Recently listed Paytm, India's leading digital payments and financial services company, has created one of the largest ESOP pools in the country - a diluted share count of about 695 mn shares, including a granted ESOP pool of 31 mn options.

The company had recently held a postal ballot for the approval of its Employee Stock Ownership Plans (ESOPs). The company witnessed 92 per cent votes in favour of the resolution. Nearly 99 per cent of votes from Paytm's shareholders categorised as public non-institutions were in favour of the ESOPs, while 67 per cent of those from its public institutional investors were against the same.

Recently, in the case of newly-listed stocks like Zomato, a majority of institutional investors had similarly voted against ESOPs schemes.

The resolutions passed were - Amendment and Ratification of One 97 Employees Stock Option Scheme 2019, Approval to extend the benefits under One 97 Employees Stock Option Scheme 2019 to the employees of subsidiary companies of the company, and Approval to extend the benefits under One 97 Employees Stock Option Scheme 2019 to the employees of group companies of the company.

Paytm had also recently released its Q3 earnings results. During the October-December quarter, the company saw its revenues jump by 89 per cent YoY to Rs 1,456 crore. A major part of the company's Q3 results was seen in its financial services play ramping up. The company disbursed 4.4 million loans (401 per cent YoY growth) aggregating to a total value of ?2,181 crore (366 per cent YOY growth). Meanwhile, the contribution profit for Q3 FY 2022 at Rs 454 crore represents a 560 per cent YoY growth.