Bangalore | Mumbai: Paytm founded by Vijay Shekhar Sharma getting a significant amount of new stock options in One97 Communications, a move that would increase his stake in the parent company to 2-3%, said people close to the matter.

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$2.2 billion Paytm IPO, billed as the largest in India in at least a decade.

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Recently more than doubled your ESOP pool Approximately 61,094,280 equity options of face value of Re 1 each out of 24,094,280 equity options. Sources said a “significant portion” of these new stock options has been allotted to Sharma. “He sought shareholder approval in August for ESOP pool expansion, which was approved earlier this month. About half of this has been allotted to Sharma.

Sharma, who holds about 15% stake in One97 Communications, is planning to sell a part of his stake through an offer for sale (OFS) in the coming years. Paytm IPO.

ETtech

The new stock options granted to him will increase his holding even after he sells a portion of his shareholding. These are performance-linked and are based on achieving certain milestones on Paytm, said sources. Another person close to the company said, “It is also a management method rewarding Sharma for growing Paytm as a leading payments firm to this point (IPO).” Besides Sharma, investors such as Ant Group, Alibaba Group, SoftBank and Elevation Capital are also expected to sell part of their stake in the Paytm IPO.

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When contacted, a Paytm spokesperson did not immediately respond to a query sent by ET.

Pre-IPO Moves

To be sure, the allocation of new stock options to Sharma is not an anomaly as many top-tier founders have received such grants prior to the IPO to take advantage of the listing. On September 10, ET reported that Tata-owned BigBasket. founder of
New management stock options were also provided. To “Keep, Attract and Inspire” talent at the online grocer.

Over the past few months, Paytm has seen its current and former executives
converting your stock options into sharesCash is expected during the IPO. In August, the company also granted new ESOPs to 166 former and current employees, which were later converted into company shares, according to regulatory filings accessed by ET.

Additionally, Paytm has formalized three appointments to the board of directors:

  • Neeraj Arora, former chief business officer of WhatsApp as non-executive independent director
  • Ashit Ranjit Leilani, Managing Partner of Sama Capital has been appointed as Non-Executive Independent Director
  • Douglas Feagin as Senior Vice President, Director of Investor Ant Group

Paytm in July
Filed a draft of the red herring prospectus Markets regulator, along with the Securities and Exchange Board of India (SEBI), to raise Rs 16,600 crore ($2.2 billion) through a public issue.

According to the draft papers, the offering will include a fresh issue of Rs 8,300 crore and a secondary issue or offer for sale of the same size. The company has kept an open window of up to Rs 2,000 crore for pre-IPO funding. If this happens, the size of the new issue will be adjusted accordingly.

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