One 97 Communications Grants Options, Allots Shares Under ESOP 2019
One 97 Communications' NRC approved the grant of 1,77,044 stock options at ₹9 each under ESOP 2019 and noted 4,90,055 lapsed and cancelled options. The committee also allotted 70,504 equity shares at ₹9 per share, increasing paid-up share capital to 64,01,80,180 equity shares, with all new shares ranking pari-passu and carrying no lock-in.
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One 97 Communications Limited, the parent entity of Paytm, disclosed on May 06, 2026, that its Nomination and Remuneration Committee (NRC) approved the grant of 1,77,044 stock options to eligible employees under the One 97 Employees Stock Option Scheme 2019 (ESOP 2019). The NRC meeting commenced at 05:30 p.m. (IST) and concluded at 06:00 p.m. (IST). The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Stock Option Grant Details
The NRC approved the grant of 1,77,044 stock options under ESOP 2019, each convertible into one fully paid-up equity share of face value ₹1. The exercise price has been set at ₹9 per stock option. The committee also took note of 4,90,055 lapsed and cancelled stock options — comprising 4,88,232 options that lapsed in accordance with the terms and conditions of ESOP 2019, and 1,823 options that were cancelled.
The following table summarises the key parameters of the stock option grant:
| Parameter: | Details |
|---|---|
| Scheme Name: | One 97 Employees Stock Option Scheme 2019 (ESOP 2019) |
| Options Granted: | 1,77,044 |
| Exercise Price: | ₹9 per stock option |
| Face Value per Share: | ₹1 |
| Options Lapsed: | 4,88,232 |
| Options Cancelled: | 1,823 |
| Total Lapsed & Cancelled: | 4,90,055 |
| Lock-in on Allotted Shares: | No Lock-in |
Stock options granted under ESOP 2019 may be exercised at any time during the period of continuous active employment from the date of vesting of the respective options. The scheme also provides for treatment of stock options in cases of death, permanent incapacity, resignation, termination, retirement, or abandonment. In the event of corporate actions such as rights issues, bonus issues, splits, consolidations, mergers, or other reorganisations, requisite adjustments shall be made in a fair and reasonable manner in accordance with ESOP 2019.
Equity Share Allotment and Capital Structure
In addition to the option grant, the NRC approved the allotment of 70,504 equity shares of face value ₹1 each, as fully paid-up, to eligible employees upon exercise of vested options under ESOP 2019. The allotment date is May 06, 2026, with the distinctive numbers of the shares ranging from 65,56,76,423 to 65,57,46,926 (both inclusive). The exercise price per share stood at ₹9, with a premium of ₹8 per share.
The key details of the allotment and resultant capital structure are presented below:
| Parameter: | Details |
|---|---|
| Shares Allotted: | 70,504 equity shares |
| Face Value per Share: | ₹1 |
| Exercise Price per Share: | ₹9 |
| Premium per Share: | ₹8 |
| Date of Issue: | May 06, 2026 |
| Distinctive Numbers: | 65,56,76,423 to 65,57,46,926 (Both Inclusive) |
| Share Capital (Pre-Allotment): | 64,01,09,676 equity shares |
| Share Capital (Post-Allotment): | 64,01,80,180 equity shares |
| Total Issued Share Capital (Post-Issue): | ₹64,01,80,180 |
Consequent to the allotment, the issued, subscribed, and paid-up equity share capital of the company increased from 64,01,09,676 equity shares to 64,01,80,180 equity shares. All newly allotted equity shares rank pari-passu with the existing equity shares of the company in all respects, and no lock-in applies to these shares.
Regulatory Compliance
The stock option grant and allotment are in compliance with the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. The original ESOP 2019 scheme was filed with the National Stock Exchange of India Limited on December 7, 2021 and March 8, 2022 (filing numbers 29276 and 30286), and with BSE Limited on December 6, 2021 and March 8, 2022 (filing numbers 143088 and 148040). The disclosure has been made by Company Secretary and Compliance Officer Sunil Kumar Bansal, and will also be hosted on the company's investor relations website at ir.paytm.com.
Historical Stock Returns for One 97 Communications
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.56% | +8.66% | +15.78% | -11.57% | +36.31% | -23.71% |
How might the high lapse rate of 4,88,232 stock options under ESOP 2019 reflect on Paytm's employee retention challenges, and what steps could the company take to improve its talent retention strategy?
Given that the exercise price is set at ₹9 per option, significantly below current market valuations, how could this dilution impact existing shareholders and Paytm's earnings per share in upcoming quarters?
As Paytm continues to gradually increase its share capital through ESOP allotments, what is the potential cumulative dilution risk for investors if the company accelerates employee stock grants in future NRC meetings?
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