PB Fintech Approves ESOP Grant Under ESOP 2024 Scheme
PB Fintech Limited, the parent company of India’s leading online insurance aggregator Policybazaar and lending marketplace Paisabazaar, has announced a significant grant of Employee Stock Options (ESOPs).
The company’s Nomination and Remuneration Committee (NRC) approved the allotment of 35,11,256 stock options to eligible employees under the PB Fintech Employees Stock Option Scheme 2024 (ESOP 2024).
This strategic move, valued at approximately ₹644 crore (based on the current market price of roughly ₹1,835 per share), underscores the firm’s commitment to talent retention, performance linkage, and long-term value creation.
PB Fintech ESOPs: Terms and Valuation
The newly granted options are convertible into an equivalent number of equity shares with a face value of ₹2 each.
The exercise price for these options has been set at ₹1,589.67 per option.
This price was calculated at a 10% discount to the volume-weighted average price (VWAP) over the 90 trading days immediately preceding the date of grant, aligning with the terms of the ESOP 2024 scheme.
The vesting process for these options is tied to both time and performance.
The vesting period is set to commence from the grant date, but with a critical condition.
100% of the options will vest in a single cycle only after the completion of four years from the grant date.
Furthermore, vesting is conditional on the volume-weighted average share price on the vesting date.
This price must be 150% or higher than the VWAP preceding the grant date.
The performance-linked vesting mechanism guarantees rewards for employees only when the company achieves substantial growth.
It also ensures that the company delivers superior shareholder value.
Once vested, employees have a maximum exercise period of two years.
Strategic Context and Business Momentum
This substantial ESOP grant comes at a time of strong financial and operational momentum for PB Fintech.
The company recently reported robust performance for the second quarter of the current fiscal year (Q2 FY26).
Revenue from operations saw a significant increase, growing by 20% to ₹1,613 crore. This compares to ₹1,348 crore in the corresponding quarter of the previous fiscal year.
Crucially, the company’s net profit dramatically spiked by 2.6 times, reaching ₹135 crore in Q2 FY26.
In addition to the ESOP grant, PB Fintech has been executing several key strategic initiatives.
Its wholly-owned subsidiary, PB Pay Private Limited, recently secured in-principle approval from the Reserve Bank of India (RBI).
This approval allows the subsidiary to operate as an online payment aggregator, positioning the company to expand its presence in the digital payments ecosystem.
Furthermore, the board has approved a capital infusion of ₹696 crore (approximately $80 million) into its subsidiary, PB Healthcare Services Pvt Ltd.
This signals a significant push to accelerate growth and enhance operations within India’s expanding health services sector.
These developments highlight a forward-looking strategy that seeks to diversify offerings and solidify its footprint across the wider fintech landscape.
The grant of over 35 lakh options clearly signals the company’s focus on incentivizing top-tier talent to the market.
This step aims to drive ambitious growth plans and ensure long-term alignment between employee compensation and the company’s market success.
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