“I will only be awarded stock grants if Paytm’s market cap exceeds IPO levels”
“I will only be awarded stock grants if Paytm’s market cap exceeds IPO levels”
In a bid to allay shareholder concerns, Paytm founder and CEO Vijay Shekhar Sharma has cited volatile market conditions for high-growth stocks worldwide as the reason the company’s shares were priced at a significantly lower price compared to the IPO price traded, adding that his shares will only accrue to him once Paytm’s market cap surpasses the IPO level.
In a letter to his shareholders, Mr. Sharma wrote that he believes the company should achieve break-even EBITDA over the next six quarters (EBITDA before ESOP costs and quarter ending September 2023) without jeopardizing any of its growth plans, ” encouraged by our business momentum, scale of monetization and operational leverage.”
The company’s shares went public in mid-November last year. The issue price was ₹2,150 per share. It is currently listed at well below half the issue price. On Wednesday, the company’s shares on the BSE closed up 4.57% at £637.15.
“Against the backdrop of volatile market conditions for high growth stocks worldwide, 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, “In line with this, I will only receive my stock awards if our market capitalization has sustainably exceeded IPO levels.”
The company added in a note to stock exchanges that its lending business grew to 6.5 million loan disbursements in the fourth quarter, bringing total loan values to ₹3,553 crore, a 417% year-on-year growth.
Additionally, Paytm App’s average monthly transaction users (MTU) grew 41% year-over-year to 70.9 million during the quarter and total merchant payment volume (GMV) processed through the platform totaled approximately 2.59 lakhcrore, a growth of 104 % YoY.
