Market Overview
The stock prices of One97 Communications, the parent company of Paytm, experienced an upward movement of up to 3% on Tuesday despite broader market challenges. As of 9:33 AM on March 11, the stock was trading at ₹685.75 per share.
Key Developments
The increase in Paytm's stock price followed a regulatory filing on March 9, where the company disclosed the allotment of 84,793 equity shares under its employee stock option schemes (ESOPs). The board of Paytm approved the allotment of shares with a face value of ₹1 each for eligible employees who exercised their vested options under ESOP 2019 and ESOP 2008.
A breakdown of the allocation includes:
- ESOP 2019: 84,377 shares allotted
- ESOP 2008: 416 shares allotted at an exercise price of ₹9 per share
Following this issuance, the company's issued, subscribed, and paid-up equity share capital increased from ₹63.76 crore to ₹63.77 crore.
This is part of a series of ESOP-related announcements by the company. In February, Paytm allocated 1.36 lakh equity shares under ESOP 2019, following a January issuance of 2.03 lakh stock options under the same scheme.
Financial Performance
Paytm reported the following financial results for Q3 FY25:
- Revenue from Operations: ₹1,827.8 crore (declined 36% from ₹2,850.5 crore in FY24)
- Net Loss: ₹208.5 crore (a reduction of 6% from ₹221.7 crore in the same quarter last year)
Regulatory Challenges
The company is currently facing regulatory scrutiny. The Enforcement Directorate (ED) recently issued a show-cause notice to Paytm and two of its subsidiaries regarding the suspected breaches of the Foreign Exchange Management Act (FEMA) related to transactions worth approximately ₹611 crore.
Conclusion
Despite market volatility, Paytm's stock showed resilience, driven by ESOP allotments and internal company developments. The firm continues to navigate financial and regulatory challenges while maintaining its operational growth strategies.
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