Ahead of Paytm’s original public immolation (IPO) rollout, several of its top workers are converting their hand stock power plan (ESOP) subventions into the company’s shares. These shares are worth an estimated Rs 600 crore, according to media reports.
To grease this exercise, One97 Dispatches Ltd, the parent company of fintech major Paytm, is in addresses with five banks to enable loans of around Rs 100 crore for the workers converting Esop subventions into the company’s shares. The name of the lenders and the exact credit size hasn’t been revealed yet The move comes after the Vijay Shekhar Sharma- led company was entered requests for conversion from its workers. Either, similar backing will reduce the duty burden on workers during the conversion.
According to the law, an hand is tested for conversion of Esop subventions into the company’s shares. This duty is calculated grounded on the difference between current share prices versus those at the time of Esop. Also, capital earnings duty is also levied on workers if they choose to vend their shares Paytm is dealing its shares at Rs and issuing Esop for 12 times, according to an Economic Times report. Significantly, about 80 percent of Esop conversion will be led by elderly Paytm workers, the report added So far, Paytm officers have not bared their anticipated IPO valuation but request experts presume the quantum could be as high as$ 25 billion. Before In July, SoftBank and Alibaba- backed Paytm had sought Sebi’s nod to raise Rs crore ($2.2 billion) through its IPO Paytm was last valued at Rs 12 lakh crore. In FY (2020-21), Paytm’s profit shrank 11 percent to Rs crore. Still, the Noida- grounded company managed to cut losses by 42 percent to Rs crore.