Paytm Rewards Staff with Fresh ESOPs Worth Over ₹60 Crore

One 97 Communications, the parent company of fintech major Paytm, has approved a fresh grant of over 5.15 lakh employee stock options (ESOPs) and the allotment of 1,00,281 equity shares.

This move, announced following a meeting of the Nomination and Remuneration Committee (NRC) on January 29, 2026, marks the company’s second major ESOP exercise in less than a month.

Details of the Second January Grant

The committee approved the grant of 5,15,617 stock options under the One 97 Employees Stock Option Scheme 2019.

Each option is convertible into one equity share with a face value of ₹1.

Based on Paytm’s closing price of approximately ₹1,168 on the BSE at the time of the announcement, these options carry a notional value of roughly ₹60.2 crore.

In addition to the new grants, the company allotted 1,00,281 shares to employees who exercised their previously vested options.

These shares were issued at an exercise price of ₹9 per share.

The company also noted that 2,63,249 options lapsed during this period.

Paytm Strengthening the Equity Base

Following this allotment, Paytm’s paid-up equity share capital has increased from ₹63.97 crore to ₹63.98 crore.

The newly issued shares rank pari-passu with existing shares, meaning they carry the same voting and dividend rights.

Notably, these shares are not subject to any lock-in period, providing immediate liquidity for the eligible employees.

This follows an earlier exercise on January 3, 2026, where Paytm allotted 1.88 lakh shares and granted 1.23 lakh options.

The frequency of these grants underscores Paytm’s strategy to use stock-based incentives to retain top talent as it navigates a competitive fintech landscape.

Financial Context and Market Reaction

The ESOP news coincided with Paytm’s Q3 FY26 results, which showed a significant recovery.

The company reported a consolidated net profit of ₹225 crore, a massive jump from the previous quarter.

Revenue also grew by 20% year-on-year to ₹2,194 crore, driven by strong performance in its payments and financial services divisions.

Despite the minor share dilution typical of ESOP exercises, analysts view the move as a positive step toward employee alignment and long-term stability, especially as the company returns to consistent profitability.

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