‘Stock grant will be with me only when Paytm’s market cap crosses IPO level’
‘Stock grant will be with me only when Paytm’s market cap crosses IPO level’
In an effort to address shareholders’ concerns, Paytm Founder and CEO Vijay Shekhar Sharma cited volatile market conditions for high-growth stocks globally, with the company’s shares trading at a price much lower than the IPO price. gave a reason for doing so, and said that his stock grant would vest to him only when Paytm’s market cap crosses the IPO level.
In a letter to his shareholders, Mr. Sharma wrote that he believes the company will grow in the next six quarters (EBITDA before ESOP costs, and up to the quarter ended September 2023) without compromising on any of its growth plans. EBITDA should operate at breakeven. The speed of our business, the scale of monetization and operational leverage”.
The company’s shares were listed on the stock exchange in mid-November last year. Its issue price was ₹2,150/per share. It is currently trading at much less than half of the issue price. On Wednesday, the company’s shares closed 4.57% higher at Rs 637.15 on the BSE.
“Against the backdrop of volatile market conditions for high-growth stocks globally, our shares are well below the IPO price. Rest assured, the entire Paytm team is committed to building a large, profitable company and creating long-term shareholder value,” he said.
Mr. Sharma, “Aligned with this, my stock grant will vest to me only when our market cap has exceeded the IPO level on an ongoing basis.”
In a communication to the exchanges, the company said its lending business grew to 6.5 million loan disbursals during the fourth quarter, taking the total loan value to ₹3,553 crore, an increase of 417% year-on-year.
Additionally, Paytm App’s Average Monthly Transaction Users (MTU) for the quarter grew by 41% YoY to 70.9 million and the total merchant payment volume (GMV) processed through its platform stood at approximately ₹2.59 lakh crore, Which shows a growth of 104% annually.