Policybazaar’s Parent Company Allocates Rs 40 Crore Worth of ESOPs to Employees
Policybazaar’s Parent Company Allocates Rs 40 Crore Worth of ESOPs to Employees
PB Fintech, the parent company of Policybazaar and Paisabazaar, has recently offered additional stock options to its employees as part of the existing Employee Stock Option Plan (ESOP) for the years 2020 and 2021.
According to the official stock exchange filing, PB Fintech has approved the issuance of 5,44,929 new stock options to eligible members at an exercise price of Rs 2 per option under the ‘PB Fintech Employees Stock Option Scheme 2020 and 2021’. This move aims to incentivize and reward its workforce and align their interests with the company’s growth and success.
In its disclosure, PB Fintech has not revealed the specific number of employees who will benefit from the stock options granted under the Employee Stock Option Scheme 2020 and 2021. Notably, each stock option awarded to eligible members will have the potential to be converted into one fully paid equity share of the company at a later date. This conversion mechanism ensures that employees have the opportunity to become shareholders of PB Fintech, aligning their interests with the company’s long-term growth and success.
Based on the current stock price of PB Fintech, the value of the newly granted Employee Stock Options (ESOPs) is estimated to be approximately Rs 40 crore. These ESOPs provide eligible employees with the opportunity to acquire shares of the company at a predetermined exercise price, allowing them to potentially benefit from the company’s growth and performance in the future. As the stock price fluctuates over time, the value of these ESOPs may vary, offering employees a potential incentive to contribute to the company’s success and share in its value appreciation.
Under the Employee Stock Option Plan (ESOP) of PB Fintech, the stock options granted to employees will vest based on the condition of maintaining continuous employment with the company. Vesting of the options is set to commence after one year from the grant date, and the vesting process will be completed in the fifth year.
This means that eligible employees will gradually gain ownership of their stock options over a period of five years, incentivizing them to stay with the company and contribute to its long-term success. The vesting schedule encourages loyalty and alignment of interests between the employees and the company’s performance and growth.
After the recent grant of (ESOPs) by PB Fintech, the company’s share price witnessed a significant increase of 6.5%, reaching Rs 764.5 within a day. Currently, the stock is being traded at Rs 758 (as of 01st Aug 13.28 PM). Analysts tracking Policybazaar, which is under PB Fintech’s umbrella, view this move as a positive indication of the company’s growth prospects and financial performance in its first quarter of FY24. The grant of ESOPs to eligible employees suggests the company’s confidence in its future growth trajectory and its commitment to retaining and motivating its workforce. Investors seem optimistic about the company’s potential, leading to the surge in its share price following the ESOP announcement.
PB Fintech has shown impressive growth in its financial performance, as indicated by its recent quarterly and annual revenue figures. In Q4 FY23, the company recorded a remarkable 61% quarterly growth, with revenue reaching Rs 869 crore. The company’s performance over the entire fiscal year FY23 was even more impressive, with a year-on-year (YOY) surge of 79% in revenue, amounting to Rs 2,558 crore.
These figures demonstrate the company’s strong momentum and consistent growth trajectory, positioning it as a prominent player in the financial technology sector. As the company prepares to announce its Q1 FY24 results, investors and analysts are likely eagerly anticipating further positive developments for PB Fintech.
Last month, One97 Communications, the parent company of Paytm, announced the granting of Employee Stock Option Plan (ESOP) options to its employees. The value of these options amounted to Rs 145 crore. Through this move, the company aims to provide its employees with an opportunity to share in the company’s growth and success, aligning their interests with that of the organization. ESOPs are a common means used by companies to incentivize and reward their employees for their contributions and dedication to the company’s objectives. This strategic move by One97 Communications reflects its commitment to fostering a positive and motivated work environment and supporting the overall growth of the company.
