Paytm has told Indian stock exchanges that its board of directors would explore share buybacks at its meeting on December 13, 2022.
Paytm share repurchase: In its planned meeting today, the board of directors of One 97 Communications Ltd (popularly known as Paytm) will explore share buybacks.
In its most recent correspondence with Indian bourses, India’s top digital ecosystem for consumers and merchants informed about the changes regarding the share purchase, claiming that it would benefit current Paytm shareholders.
Informing Indian stock exchanges on share buybacks “Pursuant to Regulation 29 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (“SEBI Listing Regulations”), we wish to inform you that a meeting of the Company’s Board of Directors is scheduled to be held on Tuesday, December 13, 2022 to consider a proposal for buyback of the Company’s fully paid-up equity shares, in accordance with the applicable provision,” said One 97 Communications Ltd.
“Given the Company’s current liquidity/financial condition, management feels that a repurchase may be advantageous to our shareholders. In line with the applicable terms of the SEBI Listing Regulations, the outcome of the Board meeting will be disclosed to the stock markets following the conclusion of the Board meeting on December 13, 2022 “One 97 Communications Ltd came to an end.
Paytm shares have been a bear’s joy since they debuted on the Indian stock exchanges on November 18, 2021. One 97 Communications Ltd’s public offering was priced between $2080 and $2150 per share, with a 9% discount on the BSE and NSE. The misery of allottees, however, did not stop there, as the Paytm share price continued to decrease at regular intervals. Paytm’s share price today is about 530 per equity share, with a 52-week low of 438.35 on the NSE.
One 97 Communications Ltd, the operator of India’s largest digital payments provider Paytm, cannot use proceeds of its mega initial public offering (IPO) for the proposed repurchase of its own shares, as rules prohibit such a move, sources said, adding the firm will use its strong liquidity for the purpose. Paytm has a liquidity of Rs 9,182 crore, as per its last earnings report.
On the previous day, Paytm stock closed at ₹528.10 apiece on BSE. Since its listing in November last year, Paytm stock has witnessed more bears than bulls and the stock is currently trading at nearly 75% discount compared to its IPO issue price of ₹2,150 apiece.
On BSE, the stock has a 52-week high and low of ₹1,584 apiece and ₹439.60 apiece respectively. In a year, the stock has corrected by at least 66%. Year-to-date, till December 12th, the stock has dipped by over 60.5%.
However, the current month has been fruitful so far. Paytm stock has gained by nearly 13% so far in December.
