Paytm share price rises as Vijay Shekhar Sharma surrenders ESOPs valued ₹1,800 crore; what we know so far

The stock climbed 0.24% to ₹867 apiece on the National Stock Exchange (NSE) at 9:21 am.

Sharma was granted these shares as part of an employee stock ownership plan (ESOP) when One97 Communications made its secondary market debut.

The equity shares will now return to the ESOP pool under One 97 Employees' Stock Option Scheme, 2019.

In a regulatory filing, the firm said, "Vijay Shekhar Sharma, Chairman, Managing Director and Chief Executive Officer of the Company vide letter dated April 16, 2025, has informed the company that he has voluntarily forgone all 2,10,00,000 (Two Crore Ten Lakhs) ESOPs granted to him under One 97 Employees Stock Option Scheme, 2019, with immediate effect."

The ESOPs are worth ₹1,815.45 crore as per Paytm's April 16 closing price of ₹864.5 per unit.

"This will result in a one-time, non-cash, acceleration of ESOP expense of ₹492 crore in the fourth quarter of the financial year 2025, and an equivalent lowering of ESOP expenses in future years," the filing said.

In the third quarter of the financial year 2024-25, Paytm narrowed its net loss to ₹208 crore from ₹220 crore in the corresponding period of the previous year.

Revenue from operations declined 36% to ₹1,826 crore in the December quarter, compared to ₹2,850 crore in Q3 FY24. The expenses declined 31% year-on-year (YoY) to ₹2,219 crore.

In the September quarter, the company posted a profit of ₹930 crore due to exceptional gains made by selling the ticketing business to Zomato.