Digital payments and financial services firm Paytm on Monday said the company is expanding its employee stock option from 24,094,280 equity options to 61,094,280 through an extra-ordinary general meeting (EGM) on September 2.

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The company proposes to the increase ESOP pool by 37,000,000 equity options thereby increasing the current ESOP pool from 2,409,4280 equity options to 61,094,280 equity options under the One97 Employees Stock Option Scheme 2019, it said.

The last increase in the ESOP Pool to the policy was approved by the members in their meeting held on March 26, 2021.

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In the letter, the company said it is seeking approval for the revised employment agreement of Vijay Shekhar Sharma as managing director and CEO of the company. It is proposed that in addition to the managing director position, he should also be designated as chief executive officer of the company.

Earlier, the Board of Directors on the recommendation made by the Nomination and Remuneration Committee in its meeting held on July 14, 2021, had accorded its approval in relation to the revised employment agreement of Vijay Shekhar Sharma, subject to the approval of the members of the company.

Also, it is seeking approval for the appointment of Neeraj Arora, Douglas Feagin, Ash Lilani to the board along with remuneration of non-executive directors as follows:

In July, Paytm had filed a draft red herring prospectus for its proposed Rs 16,600-crore initial public offering (IPO) with the Securities and Exchange Board of India. According to the document, the company plans to raise Rs 8,300 crore through fresh equity and another Rs 8,300 crore through offer-for-sale.

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Paytm founder Vijay Shekhar Sharma and Alibaba group firms will dilute some of their stake in the proposed offer-for-sale.

According to the document, investors selling stake include "Antfin (Netherlands) Holding BV, Alibaba.Com Singapore E-Commerce Private Ltd, Elevation Capital V FII Holdings Ltd, Elevation Capital V Ltd, SAIF III Mauritius Company Ltd, SAIF Partners India IV Ltd, SVF Panther (Cayman) Ltd and BH International Holdings".

The company proposes to use Rs 4,300 crore for growing and strengthening the Paytm ecosystem, including through the acquisition of consumers and merchants and providing them with greater access to technology and financial services.

Paytm plans to earmark Rs 2,000 crore for business initiatives, acquisitions and strategic partnerships and up to 25 percent of the total fundraised through the IPO for general corporate purposes.

First Published:Aug 9, 2021 5:16 PM IST