In an exchange filing, that corroborated the news of the resignation of Paytm Chief Operating Officer (COO), Bhavesh Gupta, the company has also announced the allotment of equity shares under the Employee Stock Option Plan or ESOP exercise. This announcement entails the allotment of as many as 87,373 equity shares under the scheme.
COO Bhavesh Gupta Quits
This system for context is a scheme that allows employees to acquire a portion or entirety of the company they, who employs them. Primarily utilized for succession planning, ESOPs enable business owners to gradually transition out of their ownership by selling shares to employees.
On Gupta's resignation, the company statement read, "The Board of Directors of the Company at its meeting held on May 04, 2024 took note of the resignation tendered by Mr. Bhavesh Gupta |
This comes at a time, when the same exchange filing also announced the resignation of one of the crucial figures in the company, Bhavesh Gupta, from the position of COO. The company has been wading through turbulent waters for the past few months. 2024, has not gone according to plan for the company.
On Gupta's resignation, the company statement read, "The Board of Directors of the Company at its meeting held on May 04, 2024 took note of the resignation tendered by Mr. Bhavesh Gupta, President and Chief Operating Officer of the Company (‘Senior Management Personnel’) vide his letter dated May 04, 2024. His resignation has been accepted by the Company and he will be relieved from the services of the Company w.e.f. close of business hours on May 31, 2024."
After the RBI action against Paytm Payment Banks, the company has been stuck in the eye of the storm, with even the equity markets punishing them for it. The market that closed for the day on 3 May, saw the company with 0.59 per cent deficit. The developments at the markets have not been in the company's favour. Just in the past six months, the company has lost more than half its value at Dalal Street, with a 57.99 per cent decline in the value of its share prices.
After the RBI action against Paytm Payment Banks, the company has been stuck in the eye of the storm, with even the equity markets punishing them for it. |
ESOP For Stability?
On the ESOP allotment, the company according to the exchange filing said, The Nomination and Remuneration Committee of the Board of the Company ("Committee"), on May 4, 2024, at 10:46 a.m. (IST) through circulation, approved the allotment of 87,373 equity shares having face value of Rs 1 each, as fully paid-up, to the eligible employees, upon exercise of vested options under Employee Stock Option Plan 2019.
Just in the past six months, the company has lost more than half its value at Dalal Street, with a 57.99 per cent decline in the value of its share prices. | FPJ Desk
Consequent to aforesaid allotment, the issued, subscribed and paid-up equity share capital of the Company stand increased from Rs 635,705,161 (consisting of 635,705,161 equity shares of face value of Rs 1 each) to Rs 635,792,534 (consisting of 635,792,534 equity shares of face value of ₹ 1 each).
Therefore, the ESOP arrangement is seen by some as mean to assuage its ranks. As this move could motivate employees to actively contribute to the company's growth. This scheme also offers promoters a flexible exit strategy while ensuring the company's continuity. This moves comes right before the next trading week, as the company may just brace itself for week, that could be tumultuous.
