PB Fintech, the parent of Policybazaar and Paisabazaar, has announced a massive expansion of its employee stock option plan, announcing a fresh scheme worth close to Rs 1,931 crore, about $233 million. It is part of the PB Fintech Limited Employees Stock Option Scheme 2024 and demonstrates the commitment of the company toward rewarding and retaining its talent pool.
PC: Tech Story
The board of PB Fintech has approved a resolution to issue 1,14,00,000 employee stock options to its employees, directors, and subsidiaries. This was decided subject to shareholder approval, as per the regulatory filing made by the company to the National Stock Exchange. According to this plan, the ESOPs will vest over four years from the date of grant in accordance with the long-term growth strategy of the company.
The announcement to extend ESOP by PB Fintech comes right after its stupendous financial results. For the first quarter of the current fiscal year, it posted Rs 1,010 crore in revenues, steadying to a profit of Rs 60 crore. This would be taken as a part of the streak, but PB Fintech has seen its revenue rise on a year-on-year basis by 34.4 percent to Rs 3,438 crore in FY24. It also achieved profitability with a net profit of Rs 64 crore in the last fiscal year.
The new ESOP plan came when the share price of PB Fintech was galloping. Its stock had touched a 52-week high of Rs 1,763 on August 20. In the last trading session, its shares were trading at Rs 1,694 with a total market capitalisation of Rs 77,252 crore ($9.3 billion).
In a strategic move, PB Fintech, the company behind PolicyBazaar, has increased its ESOP pool in a move similar to other leading companies within the sector. Not too long ago, Zomato got a nod from its shareholders for a new ESOP plan worth Rs 3,800 crore ($458 million). Its total ESOP pool surged to $788 million. Other public companies, such as Nykaa and TBO Tek, have increased their ESOP allocations in 2024.
The move to extend the PB Fintech ESOP plan is toward fostering a culture of ownership and incentivizing its workforce. In an attempt to pull off innovative solutions while remaining competitive in the fintech space, PB Fintech has succeeded in fostering a sense of ownership among employees by aligning their goals with the company’s growth roadmap.
Therefore, all in all, the new ESOP scheme from PB Fintech is more of a strategic investment in its human capital and only strengthens the commitment toward employee engagement and long-term success. As the firm goes on to build further on these financial achievements, this enhanced ESOP plan is likely to be key to attracting and retaining top talent and thus consequentially helping PB Fintech achieve continued growth and market leadership.
