Policybazaar's parent grants Rs 40 Cr worth ESOPs to employees

PB Fintech, the parent of Policybazaar and Paisabazaar, has granted new options to their employees under their existing Employee Stock Option Plan (ESOP) 2020 and 2021.

The company has granted 5,44,929 stock options at an exercise price of Rs 2 under the ‘PB Fintech Employees Stock Option Scheme 2020 and 2021’ to eligible members, according to its stock exchange filing. 

PB Fintech did not disclose the number of employees who will be benefited under the plan. Significantly, each stock option granted under this scheme will be converted into one fully paid equity share in the future.

As per Fintrackr’s estimates, the value of new ESOPs granted by PB Fintech stood at around Rs 40 crore, as per the company’s current stock price.

The stock option will vest based on the condition of maintaining continuous employment with the company. According to the disclosure, vesting will commence after a year from the grant and will complete in the fifth year.

After granting ESOPs, PB Fintech’s share price increased by 6.5% to Rs 764.5 in a day. The stock is currently traded at Rs 758 (01st Aug 13.28 PM). According to analyst tracing Policybazaar, the move (ESOPs grant) indicates that the company is going to show good growth and numbers in its Q1 FY24.

While yet to post their Q1 FY24 result, PB Fintech registered a 61% quarterly growth and posted Rs 869 crore revenue during Q4 FY23. However, its YOY scale surged 79% to Rs 2,558 crore during the last fiscal year.

Last month, Paytm’s parent One97 Communications also granted ESOP options worth Rs 145 crore to its employees. Entrackr had exclusively reported the development.