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What wrong with Paytm $One 97 Communications Ltd ?
ESOPs.
2.8 crore ESOPs were issued at a deep discount of Rs 9 (vs IPO price of Rs 2,150) in Sep-21 before the IPO.
Founder VSS got 76% of the new ESOP pool (yes!), increasing his stake in the parent company by 2-3% ahead of the IPO. As per Macquaire, this implies a recurring cost of INR 1,600 crores on the P&L of Paytm and puts burden on margins.
#redflag
ESOPs.
2.8 crore ESOPs were issued at a deep discount of Rs 9 (vs IPO price of Rs 2,150) in Sep-21 before the IPO.
Founder VSS got 76% of the new ESOP pool (yes!), increasing his stake in the parent company by 2-3% ahead of the IPO. As per Macquaire, this implies a recurring cost of INR 1,600 crores on the P&L of Paytm and puts burden on margins.
#redflag
