Paytm is about to have its first initial public offering soon and in preparation, it has started rewarding its employees with employee stock ownership plan or ESOP.
The offer applies to both current and former employees.
The board has approved a resolution which would allot 47,042 equity shares to 60 employees under its ESOP Scheme 2008 and ESOP Scheme 2019.
This issue is worth nearly Rs 87.02 crore or $12 million.
The largest beneficiary among the lot is Harinder Takhar, the CEO of Paytm Labs, who gains Rs 9.25 crore from the allotment.
The second highest beneficiary is Jaskaran Singh Kapany who has been awarded stocks worth Rs 8.7 crore.
Vikas Garg has gained Rs 8.9 crore and Amit Veer has gained Rs 7.8 crore worth of stocks.
Jaskaran Singh Kapany is an ex-employee who had been with Paytm from April 2015 to February 2021, serving as Head of Marketing.
He has since migrated to Xiaomi India where he will take on the role of CMO.
Vikas Garg is the present Chief Financial Officer at Paytm.
Amit Veer is a former employee who left the company in March 2021 to join Rocket Internet as Chief Strategy Officer.
Other major beneficiaries include Tushir Aggarwal and Akash Singh who have received Rs 6.5 crore worth ESOP each.
Saurabh Gupta and 53 other employees round out the total list of 60 beneficiaries.
Both Akash Singh and Saurabh Gupta presently serve the company as VPs, and Tushir Aggarwal is the Associate Vice President.
Expanding ESOP Pool Size
The ESOP pool size of the firm ballooned to $604 million after it added $62 million worth of shares in April 2021.
With this addition Paytm is now among the largest with regards to ESOP pool size.
It is followed by Oyo with a pool size of $580 million and Byju’s with $400 million.
This is the second ESOP allotment exercise carried out by Paytm after it did the same in January where it rewarded 36 employees with stocks worth $12 million.
Public Listing Plans
The firm announced that it had been approved to proceed with its IPO plan.
With the public listing in the stock market, it hopes to raise $3 billion at a valuation of around $25 billion to $30 billion.
It will raise capital by issuing fresh equity as well as through sale of the existing shareholders’ shares.
This is to ensure adherence to India’s regulations which require that 10% of shares be floated within 2 years and 25% within 5 years.
The employees can sell their stake via offer for sale, or OFS, in the company if they wish.
It is partnering with Morgan Stanley on the offering.
Valuation And Rank In Most Valued Startups
Paytm’s big ticket investors include Berkshire Hathaway Inc.,Alibaba, Elevation Capital, SoftBank Group Corp. and Ant Group Co.
Paytm is presently India’s 2nd highest valued startup at a cool $16 billion.
It is surpassed by Byju’s which is now valued at $16.5 billion, making it the 11th most valuable startup in the world.