Paytm’s parent company, One97 Communications, saw its shares remain largely flat after Vijay Shekhar Sharma, the Managing Director and CEO, voluntarily surrendered 2.1 crore ESOPs (Employee Stock Ownership Plan) that were granted to him during the company’s listing. The move did not seem to have a major impact on Paytm’s stock, as shares traded down by just 0.64% to Rs 859.45 on the National Stock Exchange (NSE).
Sharma’s decision to give up his stock options came following a settlement with the Securities and Exchange Board of India (SEBI). The market regulator had accused Sharma, his brother Ajay Shekhar Sharma, and One97 Communications of misrepresenting facts related to shareholder classification. As part of the settlement, Vijay Shekhar Sharma voluntarily surrendered 2.1 crore ESOPs, which had been granted to him under the One97 Employees Stock Option Scheme in 2019.
Details of the Surrender and Financial Implications
In a filing with the stock exchanges, One97 Communications confirmed that Vijay Shekhar Sharma had informed the company on April 16, 2025, about his decision to surrender the ESOPs. The company clarified that this voluntary move would result in a one-time, non-cash, acceleration of ESOP expenses amounting to Rs 492 crores in the fourth quarter of FY2025. This, however, would lead to a reduction in ESOP expenses in the coming years, according to the company.
The company also stated that it would share the updated ESOP cost schedule along with the results for Q4 FY2025. The voluntary surrender of the ESOPs by Sharma is seen as a part of the overall settlement agreement, which also includes the forfeiture of options by Ajay Shekhar Sharma, Sharma’s brother. Ajay Shekhar Sharma has agreed to pay Rs 35 lakh to SEBI as part of the settlement.
The Settlement with SEBI and Future Impact
The legal settlement with SEBI was reported by The Economic Times, which highlighted the issues around shareholder classification and misrepresentation of facts. Along with Vijay Shekhar Sharma’s surrender of his stock options, his brother Ajay has also given up 2.25 lakh stock options. Both have agreed to settle the case by paying a total of Rs 2.79 crore.
While the financial impact of the settlement is clear, it remains to be seen whether the surrender of ESOPs by Paytm’s leadership will influence the company’s future performance or investor confidence. As of now, the stock continues to trade under pressure, in line with broader market trends.
