Vijay Shekhar Sharma forgoes 2.1 crore Paytm ESOPs amid SEBI notice

Paytm's parent company One 97 Communications announced that Founder and CEO Vijay Shekhar Sharma has chosen to relinquish 2.1 crore shares. These shares were allocated to him through the One97 Employees Stock Option Scheme (ESOPs), 2019, as per the filing.

The move follows a SEBI notice issued in August 2024, which raised concerns over the grant of ESOPs to Sharma, citing violations of norms that bar large shareholders with significant influence from holding such benefits. In response, Paytm’s Nomination and Remuneration Committee cancelled the unvested options and returned them to the ESOP pool under the 2019 scheme.

According to Paytm, Sharma's decision to release the stock will lead to a one-time, non-cash acceleration of ESOP expenses amounting to Rs 492 crore in the quarter ending March 2025. This will also result in a corresponding reduction of ESOP expenses in the following years. Paytm will provide the detailed ESOP cost schedule in conjunction with the financial results for the quarter and year ending March, the specific date of which is still pending announcement.

However, this will also lead to lower ESOP expenses in future periods. The company plans to provide a detailed cost schedule alongside its yet-to-be-announced Q4 and FY25 financial results.

As of March 2025, Sharma, the founder of the digital payments platform, has a total of 5.78 crore shares as a public shareholder, based on the shareholding pattern data available on BSE.

The company shares closed at Rs 864.50 on the BSE on Wednesday after rising 2.97% in a single day, outperforming the 0.4% gain in the benchmark Sensex after a volatile trading session.