One 97 Communications Limited (Paytm) has announced key decisions from its Nomination and Remuneration Committee (NRC) meeting held on January 29, 2026. The committee approved significant employee stock option activities under the company's ESOP 2019 scheme, including new grants and share allotments to eligible employees.

ESOP Grant and Lapsed Options

The NRC granted 5,15,617 stock options to eligible employees under the One 97 Employees Stock Option Scheme 2019. Simultaneously, the committee noted 2,63,249 lapsed stock options in accordance with the scheme's terms and conditions.

Each stock option is convertible into one fully paid-up equity share having a face value of ₹ 1 each. The exercise price has been set at ₹ 9 per stock option, with the granted options being exercisable anytime during the entire period of continuous active employment from the date of vesting.

Share Allotment and Capital Structure

The committee also approved the allotment of 1,00,281 equity shares with a face value of ₹ 1 each to eligible employees upon exercise of vested options under the ESOP 2019 scheme. This allotment resulted in a significant change to the company's capital structure.

Share Allotment Details

The newly allotted equity shares carry specific characteristics and regulatory compliance features. The shares were issued on January 29, 2026, with distinctive numbers ranging from 65,52,94,882 to 65,53,95,162 (both inclusive).

The allotted equity shares rank pari-passu with existing equity shares of the company and are not subject to any lock-in restrictions. The shares are listed on both the National Stock Exchange of India Limited and BSE Limited.

Meeting and Regulatory Compliance

The NRC meeting commenced at 05:30 p.m. (IST) and concluded at 05:44 p.m. (IST) on January 29, 2026. The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring full regulatory compliance. The company has also hosted this disclosure on its investor relations website at ir.paytm.com, maintaining transparency with stakeholders and regulatory authorities.

One 97 Communications , the parent company of digital payments platform Paytm, experienced significant selling pressure on Friday as shares tumbled 10% to hit a day's low of ₹1,134. This marked the fourth decline in the past five trading sessions, raising concerns among investors about the company's near-term prospects.

Payment Infrastructure Fund Concerns Drive Selloff

The primary catalyst behind the sharp decline appears to be market apprehensions surrounding the Payment Infrastructure Development Fund (PIDF), a government scheme designed to incentivize digital payment infrastructure deployment. The scheme, currently extended until December 2025, lacks clarity on further extensions beyond that date.

According to analyst assessments, PIDF-linked incentives contribute approximately 20% to Paytm's operating profit. Any discontinuation of this scheme could materially impact companies providing digital payment and payment infrastructure services. However, these concerns remain speculative as the Reserve Bank of India has not issued any official clarification regarding the scheme's future.

Investec Initiates Bullish Coverage

Contrasting the market sentiment, brokerage firm Investec launched coverage on Paytm with a 'Buy' rating and an ambitious price target of ₹1,550 per share. This target suggests a potential upside of 23% from current trading levels.

Investec highlighted Paytm's robust technology infrastructure and embedded merchant relationships as key competitive advantages that provide sustainable pricing power and create high switching costs. The brokerage emphasized that with most merchant acquisition activities completed and a digital-first operational approach, the company is well-positioned to capitalize on strong operating leverage.

Institutional Investor Activity

The December quarter witnessed notable changes in Paytm's shareholding pattern, particularly among institutional investors. Domestic mutual funds reduced their stake for the first time since the company's stock market debut in November 2021, after consistently increasing exposure over three years.

Retail shareholders continued their selling streak, with their holdings dropping for the seventh consecutive quarter to the lowest level since September 2023. This persistent retail exodus reflects ongoing concerns about the company's long-term prospects and regulatory challenges.

Market Performance and Outlook

At approximately 12:30 pm on Friday, Paytm shares were trading at ₹1,160, representing an 8% decline from the previous session's close. The stock's recent volatility underscores the market's sensitivity to regulatory developments and policy changes affecting the digital payments sector.

The contrasting views between market participants and institutional analysts highlight the complex investment landscape surrounding Paytm. While immediate concerns about PIDF extension create near-term headwinds, the company's fundamental business strengths and growth potential continue to attract positive analyst attention.