Vijay Shekhar Sharma Of Paytm Forfeits 21 Million ESOP Units

One97 Communication Managing Director and CEO, Vijay Shekhar Sharma, has decided to voluntarily forgo 21.0 million in employee stock ownership plan units, effective immediately, the company informed exchanges on Wednesday.

In response to this voluntary offer, the Nomination and Remuneration Committee has cancelled the unvested ESOPs, which have been returned to the ESOP pool under the One97 Employees Stock Option Scheme, 2019.

The company, which owns brand Paytm,  stated that this will lead to a one-time, non-cash acceleration of ESOP expenses amounting to ₹4.92 billion for the January-March period, while also reducing future ESOP expenses. An illustrative ESOP cost schedule will be shared with the company’s January-March results.

According to a report by Mint, a year before Paytm's 2021 IPO, Sharma held a 14.7% stake in the company. To qualify for ESOP grants, he reduced his holding to 9.1% by transferring 30.97 million shares to Axis Trustee Services, which managed the shares on behalf of his family trust. SEBI later issued notices to Sharma and other board members involved during the IPO, citing alleged misrepresentation of facts.