Paytm Rewards Workforce with 1.89 Lakh Share Allotment

One 97 Communications, the parent company of fintech major Paytm, has officially expanded its equity base by allotting 1,88,879 equity shares to employees.

This move, finalized on January 3, 2026, follows the exercise of vested options under the company’s Employee Stock Option Plan (ESOP) 2019 scheme.

The allotment signifies a continued commitment to talent retention as the company navigates a pivotal phase of regulatory recovery and operational expansion in early 2026.

Financial Mechanics and Capital Expansion

The Nomination and Remuneration Committee (NRC) of the Board approved the allotment during its weekend session.

The shares carry a face value of ₹1 each and were issued at an exercise price of ₹9 per share, a standard pricing formula maintained by the company for its 2019 scheme to reward long-term association.

Following this allotment, Paytm’s paid-up equity share capital has increased from ₹63.95 crore to ₹63.97 crore.

These new shares rank pari passu with existing equity, meaning holders will enjoy identical voting and dividend rights.

Notably, the company confirmed that these shares are not subject to any mandatory lock-in period, providing employees with immediate liquidity.

Paytm Fresh Grants and Talent Retention Strategy

In a concurrent move to bolster its workforce morale, the board also approved a fresh grant of 1,23,908 stock options to eligible employees.

At the current market price of approximately ₹1,340 per share, these newly granted options represent a notional value of roughly ₹16.6 crore.

While the company expanded its pool, the committee also noted the lapse of 4,25,702 stock options that were either not exercised within the specified window or forfeited due to employee departures.

This “clearing” of the ESOP pool allows the company to reallocate equity to current high-performers without excessive dilution of shareholder value.

Context: Regulatory Wins and Financial Resilience

This equity allotment comes on the heels of a massive regulatory breakthrough for Paytm Payments Services Limited (PPSL).

In December 2025, the Reserve Bank of India (RBI) granted PPSL formal authorization to operate as a payment aggregator for online, offline, and cross-border transactions.

This approval has significantly boosted investor confidence, with the stock rebounding nearly 111% from its 52-week low to hit a high of ₹1,381.75 in early January 2026.

However, the company’s recent Q2 FY26 financial results showed a sharp decline in consolidated net profit to ₹21 crore, down from a high base of ₹930 crore the previous year (which included one-time gains).

Despite the profit dip, revenue rose 24% year-on-year to ₹2,061 crore, suggesting that the core business engine remains strong as the company moves toward full-scale merchant onboarding.

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