Paytm Share Price Gain 3% Despite Weak Market, ESOP Allotment Boosts Sentiment

Paytm’s parent company, One97 Communications, saw its share price rise by 3% on March 11 despite overall weak market conditions. At 9:33 AM, Paytm share price was trading at ₹685.75 per share.

Share Allotment Under ESOPs

The stock gained momentum after Paytm announced on March 9 that it had allotted 84,793 equity shares under its employee stock option plans. According to the regulatory filing, the board approved the issuance of shares with a face value of ₹1 each to employees who exercised their vested options under ESOP 2019 and ESOP 2008.

• ESOP 2019: 84,377 shares allotted
• ESOP 2008: 416 shares allotted at ₹9 per share

With this allotment, Paytm’s total issued and paid-up share capital increased from ₹63.76 crore to ₹63.77 crore.

Frequent ESOP Announcements

Paytm has been actively allocating ESOPs in recent months. In February, it allotted 1.36 lakh shares under ESOP 2019, and in January, it issued 2.03 lakh stock options under the same plan.

Financial Performance in Q3 FY25

On the financial side, Paytm reduced its net loss by 6% to ₹208.5 crore in Q3 FY25, compared to ₹221.7 crore in the same quarter last year. However, revenue from operations dropped by 36% to ₹1,827.8 crore, down from ₹2,850.5 crore in FY24.

Regulatory Challenges

Despite its efforts to improve financial performance, Paytm is facing regulatory scrutiny. The Enforcement Directorate (ED) recently issued a show cause notice to Paytm and two of its subsidiaries for alleged violations of FEMA regulations in transactions worth ₹611 crore.

Conclusion

While Paytm’s share price gained amid weak market conditions, its financial performance remains mixed, with revenue declining. Meanwhile, regulatory scrutiny continues to pose challenges.

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