Paytm Employees to turn ESOPs to Shares ahead of IPO
Hundreds of Paytm executives are converting their employee stock options into shares in preparation for the digital payments company to launch one of India's largest initial public offerings later this year.
According to people familiar with the situation, the shares being converted could be worth more than Rs 600 crore in total, based on the Noida-based company's most recent valuation.
Paytm was last valued at less than Rs 12 lakh crore ($16 billion).
According to the sources, Paytm is also working with lending companies to facilitate loans of around Rs 100 crore for its top executives in order to facilitate these transactions. This type of financing is expected to assist employees in dealing with the tax payout during the conversion, which will be based on the difference between the current share price and the price at which the ESOPs were granted.
According to one person with knowledge of the details, this initiative will benefit approximately 300 employees.
“They (Paytm) were getting many requests from employees about the conversion, and since it’s a significant amount, the financing is being arranged through partner lenders,” the person added.
These moves come on the heels of Zomato's stellar listing last month, which spawned approximately 18 millionaires among its senior leadership, according to sources.
Paytm has not officially commented on the valuation it expects to list at, but sources close to the company believe it could be more than $25 billion.
Paytm has been issuing ESOPs for over 12 years, and its shares are currently worth around Rs 18,000 per share. An employee who received ESOP grants at a price of Rs 1,000 per share must therefore pay tax (based on salary bracket) on the Rs 17,000 difference.
Paytm has been issuing ESOPs for over 12 years, and its shares are currently worth around Rs 18,000 per share. An employee who received ESOP grants at a price of Rs 1,000 per share must therefore pay tax (based on salary bracket) on the Rs 17,000 difference.
According to sources, 80 percent of the ESOP conversions will be led by Paytm's senior employees.
According to people familiar with the situation, the shares being converted could be worth more than Rs 600 crore in total, based on the Noida-based company's most recent valuation.
Paytm was last valued at less than Rs 12 lakh crore ($16 billion).
According to the sources, Paytm is also working with lending companies to facilitate loans of around Rs 100 crore for its top executives in order to facilitate these transactions. This type of financing is expected to assist employees in dealing with the tax payout during the conversion, which will be based on the difference between the current share price and the price at which the ESOPs were granted.
According to one person with knowledge of the details, this initiative will benefit approximately 300 employees.
“They (Paytm) were getting many requests from employees about the conversion, and since it’s a significant amount, the financing is being arranged through partner lenders,” the person added.
These moves come on the heels of Zomato's stellar listing last month, which spawned approximately 18 millionaires among its senior leadership, according to sources.
Paytm has not officially commented on the valuation it expects to list at, but sources close to the company believe it could be more than $25 billion.
Paytm has been issuing ESOPs for over 12 years, and its shares are currently worth around Rs 18,000 per share. An employee who received ESOP grants at a price of Rs 1,000 per share must therefore pay tax (based on salary bracket) on the Rs 17,000 difference.
Paytm has been issuing ESOPs for over 12 years, and its shares are currently worth around Rs 18,000 per share. An employee who received ESOP grants at a price of Rs 1,000 per share must therefore pay tax (based on salary bracket) on the Rs 17,000 difference.
According to sources, 80 percent of the ESOP conversions will be led by Paytm's senior employees.
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